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Taxation and social protection under governance decentralisation

Epstein, Gil S. ; Gang, Ira N.



Abstract

Governments do not have perfect information regarding constituent priorities and needs. This lack of knowledge opens the door for groups to lobby in order to affect the taxes they pay the government. We examine the political economy of a decentralised revenue-raising authority in light of social protection expenditures by constructing a theoretical model of hierarchical contests and comparing the ...

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