Michael Keen

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  • Thomas Baunsgaard, Michael Keen, +9 authors Shang-Jin Wei
  • 2006
With the public finances of many developing and emerging market countries still heavily dependent on trade tax revenues, further trade liberalization may be hindered unless they are able to develop alternative sources of revenue. While there is now a well-established body of theory and policy advice on how this might be done in principle, this paper uses(More)
Corruption, evasion and the abuse of power — and the possibility thereof — are pervasive features of economic activity. A prominent instance is tax collection. This paper examines the implications of corruptibility and the potential abuse of authority for the effects and optimal design of (potentially non-linear) tax collection schemes. Amongst the findings(More)
Almost unknown in 1960, the value added tax (VAT) is now found in more than 130 countries, raises around 20 percent of the world’s tax revenue, and has been the centerpiece of tax reform in many developing countries. This paper explores the causes and consequences of the remarkable rise of the VAT. A key question is whether it has indeed proved, as its(More)
Federal structures create the possibility of vertical tax externalities between levels of government, with the private sector’s response to the tax policy decisions of one level affecting the tax base of the other. Such effects arise most obviously when both levels of government co-occupy the same tax base. This paper reviews and extends recent results on(More)
This paper focuses on two core tax design issues that arise in addressing current fiscal challenges. It first explores the idea, prominent in troubled Eurozone countries, of a “fiscal devaluation”: shifting from social contributions to the VAT as a way to mimic a nominal devaluation. Empirical evidence is presented which suggests that in Eurozone countries(More)
Using micro-level data, we examine the effects of Russia’s 2001 flat rate income tax reform on consumption, income, and tax evasion. We use the gap between household expenditures and reported earnings as a proxy for tax evasion with data from a household panel for 1998-2004. Utilizing difference-in-difference and regression-discontinuity-type approaches, we(More)
In 2001, Russia dramatically reduced its higher rates of personal income tax (PIT), establishing a single marginal rate at the low level of 13%. In the following year, real revenue from the PIT increased by about 26%. This ‘flat tax’ experience has attracted much attention (and emulation), making it perhaps the most important tax reform of recent years. But(More)
We investigate the relation between changes in tax composition and long-run economic growth using a new dataset covering a broad cross-section of countries with different income levels. We specifically consider 69 countries with at least 20 years of observations on total tax revenue during the period 1970-2009—21 highincome, 23 middle-income and 25(More)
Conventional wisdom has it that the value-added tax is not a suitable instrument for lowerlevel jurisdictions (‘provinces’) in a federal system. The problems that arise when it is so used have become a serious constraint on the development of the VAT— and closer economic integration— in Brazil, the EU, India and elsewhere; and, as pressures towards(More)
We present a simple model of petroleum exploration and development that can be applied to study the performance of alternative tax systems and identify potential distortions. Although the model is a highly simplified, it incorporates many factors and some of the key tradeoffs that would influence an investor’s investment behavior. The model recognizes the(More)