Public Expenditure and Tax Policy for Economic Development

  • Christopher J. Heady
Chapter
Part of the International Economic Association Series book series (IEA)

Abstract

The purpose of this paper is to provide a survey of some aspects of public finance for developing countries. This implies that the subject is somehow different from public finance as it is applied to developed capitalist economies or the emerging market economies of central and Eastern Europe. As somebody who has worked on public finance issues in developing countries and in both the United Kingdom and Czechoslovakia, my view is that the same basic methods of analysis are applicable to questions of public finance in all countries. The special features of public finance for developing countries arise from two factors: their recent economic history and their special institutional structures. This paper will concentrate on these special features, but that should not obscure the similarities in general approach.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Atkinson, A.B. and Stiglitz, J.E. (1976) ‘The design of tax structure: direct versus indirect taxation’, Journal of Public Economics, vol. 6, pp. 55–75.CrossRefGoogle Scholar
  2. Blundell, R., Heady, C.J. and Medhora, R. (1992) ‘Labor markets in an era of adjustment: The case of Côte d’Ivoire’, in Horton, S., Kanbur R. and Mazumdar, D. (eds) Labor Markets in an Era of Adjustment (Washington, DC: Economic Development Institute, World Bank).Google Scholar
  3. Convia, G., Jolly, R. and Stewart, F. (1987) Adjustment with a Human Face (Oxford: Clarendon Press).Google Scholar
  4. Deaton, A. and Stern, N. (1986) ‘Optimally uniform commodity taxes, taste differences and lump-sum grants’, Economics Letters, vol. 20, pp. 263–6.CrossRefGoogle Scholar
  5. Diamond, P.A. and Mirrlees, J.A. (1971) ‘Optimal taxation and public production: I and II’, American Economic Review, vol. 61, pp.8–27, 261–78.Google Scholar
  6. Diamond, P.A. and Mirrlees, J.A. (1976) ‘Private constant returns and public shadow prices’, Review of Economic Studies, vol. 43, pp. 41–7.CrossRefGoogle Scholar
  7. Ebrahimi, A. and Heady, C. (1988) ‘Tax design and household composition’, Economic Journal, vol. 98, pp. 83–96.CrossRefGoogle Scholar
  8. Heady, C.J. (1987) ‘Designing taxes with migration’, Economic Journal, vol. 97, pp. 87–98.CrossRefGoogle Scholar
  9. Heady, C.J. (1988) ‘Optimal taxation with fixed wages and induced migration’, Oxford Economic Papers, vol. 40, pp. 560–74.Google Scholar
  10. Heady, C.J. and Mitra, P.K. (1982) ‘Restricted redistributive taxation, shadow prices and trade policy’, Journal of Public Economics, vol. 17, pp. 1–22.CrossRefGoogle Scholar
  11. Heady, C.J. and Mitra, P.K. (1986) ‘Optimal taxation and public production in an open dual economy’, Journal of Public Economics, vol. 30, pp. 293–316.CrossRefGoogle Scholar
  12. Heady, C.J. and Mitra, P.K. (1987a) ‘Distributional and revenue raising arguments for tariffs’, Journal of Development Economics, vol. 26, pp. 77–101.CrossRefGoogle Scholar
  13. Heady, C.J. and Mitra, P.K. (1987b) ‘Optimal taxation and shadow pricing in a developing economy’, in Newbery and Stern (1987).Google Scholar
  14. Little, I.M.D. and Mirrlees, J.A. (1974) Project Appraisal and Planning for Developing Countries (London: Heinemann).Google Scholar
  15. Newbery, D. and Stern, N. (eds) (1987) The Theory of Taxation for Developing Countries (Oxford: Oxford University Press).Google Scholar
  16. Stiglitz, J.E. and Dasgupta, P.S. (1971) ‘Differential taxation, public goods and economic efficiency’, Review of Economic Studies, vol. 38, pp. 151–74.CrossRefGoogle Scholar
  17. United Nations Industrial Development Organization (UNIDO) (1972) Guidelines for Project Evaluation (New York: United Nations).Google Scholar
  18. World Bank (1988) World Development Report 1988 (Oxford: Oxford University Press).Google Scholar
  19. World Bank (1991a) World Development Report 1991 (Oxford: Oxford University Press).Google Scholar
  20. World Bank (1991b) Lessons of Tax Reform ( Washington, DC: World Bank).Google Scholar

Copyright information

© International Economic Association 1993

Authors and Affiliations

  • Christopher J. Heady
    • 1
  1. 1.University of BathUK

Personalised recommendations