Tables
Figures
Preface
Abbreviations
1 Introduction to Public Sector Economics
Introduction
Pareto Optimality
Sources of Market Failure
Constraints on Public Policy
Fiscal Instruments
Summary
2 Public Goods and Externalities
Introduction
The Public Goods Concept
Demand for Public Goods
Optimal Provision of Public Goods
Impure Public Goods and the Theory of Clubs
The Tiebout Model
Externalities
Applications to Developing Countries
Summary
3 The Role of Government in Market Economies
Introduction
Libertarian Views on the Role of the State
The Neoclassical Role of Government
Government Regulation
The Growth and Development Role of Government
Government Failure
Government and Market-Oriented Development
Summary
4 Public Choice
Introduction
Public Choice: Definition and Scope
Theories of Public Choice
Extensions of the Public Choice Approach
Summary
5 Political Business Cycles
Introduction
Theories of the Political Business Cycle
Relevance of Political Business Cycles to Developing Countries
Summary
Public Expenditure Analysis
Introduction
Approaches to Public Expenditure Growth
Allocation and Control of Public Expenditure
Public Expenditure and Economic Growth
Summary
7 Income Distribution and Poverty Alleviation in Developing Countries
Introduction
Concept and Measurement of Income Distribution
Economic Development and Income Inequality
Measurement and Extent of Poverty
90
Policies to Alleviate Poverty and Redistribute Income
India’s Experience with Poverty Alleviation Programmes
Summary
8 Inequitable Access to Health Care in Developing Countries
Introduction
Theoretical Framework
The Continuing Concern with Access to Health Care
Cost of Access and Equity
Equity and the Deployment of Resources
Summary
9 Introduction to Public Utility Regulation
Introduction
Nature of Public Utilities
Marginal Cost Pricing
Principles of Rate-Making
Summary
10 Introduction to Cost-Benefit Analysis in Developing Countries
Introduction
Stages of Cost-Benefit Analysis
Evaluation of Costs and Benefits
Financial Decision Criteria
Ecological Externalities, Risk and Uncertainty
Summary
11 The Budgetary Process and Budget Deficits in Developing Countries
Introduction
The Traditional Budgetary Process
Alternative Approaches to Budgeting
Structural Causes of Budget Deficits
Statistical Evidence on Budget Deficits and Surpluses
Financing the Budget Deficit
Balance of Payments Implications of Deficit Financing
Deficit Financing and the Public Debt
Budget Deficits and Ricardian Equivalence
Summary
12 Stabilization Policy
Introduction
The Orthodox IMF Stabilization Programme
Structuralist Critique of the Orthodox IMF Stabilization Model
Importance of Fiscal and Incomes Policy
Selected Stabilization Experiences
Summary
13 Structural Adjustment
Introduction
Characteristics of Structural Adjustment Programmes
Structural Adjustment Experiences
Summary
14 Introduction to Taxation
Introduction
The Equity Principle
The Role of the Tax System
Taxable Capacity and Tax Effort
Tax Elasticity and Tax Buoyancy
Summary
15 Incidence and Efficiency Costs of Taxation
Introduction
Methods of Incidence Analysis
Partial Equilibrium Analysis
Specific, Differential and Balanced Budget Incidence
General Equilibrium Analysis
Methodology of Tax Incidence Measurement
Incidence Studies in Developing Countries
Concept of Excess Burden
Optimal Taxation
Relevance of Optimal Taxation for Developing Countries
Summary
16 Supply-Side Tax Policy and Tax Reform
Introduction
Supply-Side Tax Policy
Principles of Tax Reform
Selected Tax Reform Experiences Outside the Caribbean
The Barbadian Tax Reform
Summary
17 Taxes on Income and Wealth
Introduction
The Personal Income Tax
The Corporation Tax
The Capital Gains Tax
The Property Tax
Taxes on Wealth, Transfers and Assets
Payroll Taxes
Summary
18 Indirect Taxation in Developing Countries
Introduction
Importance of Indirect Taxes in Selected Caribbean Countries
Issues in Indirect Taxation
Import Taxes
Excise Taxes
Single-Stage Sales Taxes
The Value-Added Tax (VAT)
The Barbados VAT
VAT Implementation Experiences in the Caribbean
Colombia’s Experience with the VAT
VAT Lessons from Developing Countries
Summary
19 Taxation of Productive Sectors in Developing Countries
Introduction
Export Taxes
Tourism Taxation
Land Taxation
Taxing the Financial Sector
Taxing the Mineral Sector
Summary
20 International Taxation
Introduction
Tax Incentives for Foreign Investment
Tax Havens and Offshore Centres
285
Transfer Pricing and Taxation
Double Taxation, Withholding Taxes and Tax Treaties
Fiscal Harmonization
Scope for Fiscal Harmonization in CARICOM
Summary
21 Tax Administration
Introduction
Importance and Scope of Tax Administration
Tax Evasion
Administrative and Compliance Costs of Taxation
Administrative Tax Reform
Summary
Notes
Appendix A
Role of the State, Stabilization and Structural Adjustment: Selected Caribbean Countries
Appendix B
Establishment of Public Utilities Commissions in Some Caribbean
Countries
Appendix C
Tax Reform Events in Selected Caribbean Countries
Appendix D
Social Security Laws and Coverage in the Caribbean
Glossary
References
Index