WORKSHOP ON THE ECONOMICS OF TAXATION
June 3-4, 2025
IEB Report 2/2024: Competitiveness of the Economy and the Fiscal System
In a globalized world, business competitiveness is particularly important; within it, taxes can play a key role. When can a tax system be considered competitive? One easy and immediate answer has to do with the level of taxation: a low tax burden compared with other countries would ensure a competitive tax system. But the issue is somewhat more complex. First, economic development also requires quality public services and infrastructure, which can hardly be provided without funding. Second, the tax structure also matters, i.e. the weight of the various taxes, as well as each one’s specific design, in which the nominal tax rate is an important factor. Indeed, along with other legal aspects, it is what ultimately determines the effective tax rate, which can condition the establishment of companies or attraction of foreign direct investment. And third, in addition to the direct tax burden, there are also compliance costs1, which are in part related to how many levels of government have regulatory powers.
SEMINAR: Mazhar Waseem (University of Manchester) – “Intended and Unintended Consequences of Anti-Avoidance Rules: Evidence from Uganda”
December 10, 2024 – 14.30h – Room 1038
SEMINAR: Jakob A Brounstein (Institute for Fiscal Studies) – “The three body problem: Ecuador’s tax on tax haven shareholdership”
December 3, 2024 – 14.30h – Room 1038
SEMINAR: Emanuel Hansen (LMU Munich) – “Designing redistribution with endogenous transfer take-up”
October 15, 2024 – 14.30h – Room 1038
2024/05: The taxing challenges of the state: Unveiling the role of fiscal & administrative capacity in development
During the past two decades, several factors have challenged the stability of na-tional states, adding tensions to the connection between the state and the individual. This paper reviews the literature on state capacity. First, it introduces the origin of the literature and presents the well-established positive correlation between state ca-pacity and economic development. Second, it touches upon fiscal and administrative capacity and conflict. It concludes with a provocative reflection on digital nomads to push the research frontier in analysing the connection between the state and the individual.
