The role of informal finance in household capital accumulation: evidence from Taiwan

Article Abstract:

The pattern of durable goods diffusion in Taiwan is examined for the period 1971 - 1991 to show that rapidly growing economies experience changed consumption patterns. The accumulation of durable goods is related to participation in rotating savings and credit associations (roscas). Results of the study show that many Taiwanese households still depended on traditional financial institutions despite the growth in per capita income. An analysis is done to test the idea that roscas lower the cost of savings for durables.

Savings & Loan Assns, Savings Institutions, Taiwan, Economic aspects, Consumption (Economics), Savings and loan associations, Capital formation

---

Black markets and optimal evadable taxation

Article Abstract:

A model of evadable indirect taxation revealed two categories of optimal taxation. An optimal tax system that imitates a 'cash cow' pattern is observed whenever tax is administered in a less efficient way. On the other hand, a system that imitates a slightly modified Ramsey rule is observed whenever tax is efficiently administered. The 'market-thinning' effect associated with implementation of high taxes is found to result in low-price black markets and high-price legal markets.

Tax Law, Public Finance Activities, Economics, Research and Development in the Social Sciences and Humanities, Tax administration and procedure, Tax administration, Tax research, Black market

---

Taxes and bribery: the role of wage incentives

Article Abstract:

A model is developed to examine three compensation schemes for tax inspectors exposed to bribery. The study compared the merits of paying reservation wages, efficiency wages and capitulation wages to increase tax collection. It reveals that efficiency wages, which are supposed to prevent bribery, may not actually work unless certain conditions exist. It also suggests the payment of capitulation wages and strict monitoring of inspectors as an implementable alternative.

Tax collection

Similar abstracts:

• Abstracts: Th existence of steady states in multisector capital accumulation models with recursive preferences. Structure of Pareto optima when agents have stochastic recursive preferences
• Abstracts: Financial market frictions, monetary policy, and capital accumulation in a small open economy. Monetary stability and liquidity crises: The role of the lender of last resort
• Abstracts: The role of exclusive territories in producers' competition. Is hospital competition wasteful?
• Abstracts: The logic of belief and belief change: a decision theoretic approach. On countervailing incentives
• Abstracts: Survival of the fittest? An analysis of self-employment duration in Britain. Analysing credibility in high-inflation countries: a new approach

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.