Tax Smoothing in a Financially Repressed Economy : Evidence from India

Evidence from India

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 that the central government of India has tax-smoothed,... READ MORE...

Publication date: August 1998
ISBN 9781451854466
$15.00

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