The Fiscal Contract: States, Taxes and Public Services

摘要: Using data from approximately ninety countries, the author shows that more a state taxes rich as percentage of GDP, it protects property rights; and poor, provides basic public services. There is no evidence states gouge to benefit poor or vice versa, contrary state-capture theories. Nor there any spending are unrelated, state-autonomy models. Instead, operate much like fiscal contracts, with groups getting what they pay for.