Tax Smoothing in a Financially Repressed Economy : Evidence from India /

India has a long history of running fiscal deficits. Two broad considerations motivate a government to run a deficit: tax smoothing and tax tilting. This paper tests a version of Barro's tax-smoothing model, using Indian data for the period 1951-52 to 1996-97. The empirical results indicate tha...

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Bibliografiske detaljer
Hovedforfatter: Cashin, Paul
Andre forfattere: Olekalns, Nilss, Sahay, Ratna
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1998.
Serier:IMF Working Papers; Working Paper ; No. 1998/122
Online adgang:Full text available on IMF
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245 1 0 |a Tax Smoothing in a Financially Repressed Economy :   |b Evidence from India /  |c Paul Cashin, Nilss Olekalns, Ratna Sahay. 
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520 3 |a India has a long history of running fiscal deficits. Two broad considerations motivate a government to run a deficit: tax smoothing and tax tilting. This paper tests a version of Barro's tax-smoothing model, using Indian data for the period 1951-52 to 1996-97. The empirical results indicate that the central government of India has tax-smoothed, while the regional governments of India have not. The paper also finds evidence of tax tilting, reflected in financial repression, which has led to the accumulation of excessive public liabilities. 
538 |a Mode of access: Internet 
700 1 |a Olekalns, Nilss. 
700 1 |a Sahay, Ratna. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1998/122 
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