Taxing Property in Developing Countries: Theory and Evidence from Mexico

Brockmeyer, Anne; Estefan, Alejandro; Arras, Karina Ramírez; Serrato, Juan Carlos Suárez

doi:10.3386/w28637

Cited by 18 publications

(11 citation statements)

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“…In fact, much of the economics literature focuses on enforcement and third-party reporting (e.g. Pomeranz 2015; Naritomi 2019; Jensen 2022), tax administration (Khan et al 2015(Khan et al , 2019Basri et al 2019;Balan et al 2022) and tax design (Best et al 2015;Brockmeyer et al 2023). In addition, three ongoing studies explore whether providing public goods increases tax compliance (Krause 2020;Khan et al 2021;Prichard et al 2020).…”

Section: Discussionmentioning

confidence: 99%

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The taxman cometh: Pathways out of a low‐capacity trap in the Democratic Republic of the Congo

Weigel,

Kabue Ngindu

2023

Economica

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How might fragile states escape a low‐capacity trap in which citizens pay little tax and the government has insufficient revenue to increase enforcement or provide public goods? We argue that governments can escape such traps by regularizing tax collection. When citizens observe taxes being collected in a systematic, non‐arbitrary manner, they are likely to update positively about the procedural performance of the government, increasing their intrinsic motivation to comply. We test this idea in the first door‐to‐door property tax collection campaign in Kananga, Democratic Republic of the Congo, which raised compliance from near zero to 10.3%. Linking pre‐campaign surveys with administrative tax data, we document a strong relationship between citizens' prior perceptions of government performance and property tax payment. Then, exploiting the campaign's random roll‐out, we find that systematic tax collection caused citizens to update positively about the government's procedural performance. Together, these results are consistent with a virtuous cycle of perceived government performance and fiscal capacity.

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Section: Discussionmentioning

confidence: 99%

“…2015; Brockmeyer et al . 2023). In addition, three ongoing studies explore whether providing public goods increases tax compliance (Krause 2020; Khan et al .…”

mentioning

confidence: 99%

The taxman cometh: Pathways out of a low‐capacity trap in the Democratic Republic of the Congo

Weigel,

Kabue Ngindu

2023

Economica

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“…Likewise, it can be defined as an annual obligatory contribution which takes care of taxing the exact amount that the local government has in its database, whether these are rural or urban properties (Belmonte et al 2021). This tax obliges natural persons as well as legal entities to comply with it, as long as they have properties under the name of the person or company name (Brockmeyer et al , 2021).…”

Section: Theoretical Basismentioning

confidence: 99%

Administrative management in the collection of property tax in the municipality of Condorcanqui, Peru

Cruz

Fernández

Rodríguez

et al. 2022

SIJIS

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The general objective was to determine how administrative management affects property tax collection in the municipality of Condorcanqui, Peru. A quantitative and qualitative approach was used, with a non-experimental transectional design, of a descriptive-correlational type, the techniques used were the survey and documentary analysis, as instruments were the documentary analysis guide and the questionnaire, which was applied to 92 taxpayers of the municipality of Condorcanqui, Peru. The results revealed that the administrative management reached 54.3% in the deficient level and on the collection of the property tax it was observed that in the first semester from January to June, of the years 2018 and 2020 present a drop in the collection of 44% and 45% respectively, only in 2019, it reached an increase of 47%. On the other hand, in the second semester from July to December 2017, it is evident that 2019 obtained a drop of 23%, on the other hand, in 2018 had a slight increase of 15% and in 2020 13%, in addition, they achieved a Spearman's Rho of 0.671 and a bilateral sigma of less than 0.05. It is concluded that the impact of administrative management is direct linear moderate with the collection of property tax, thus demonstrating that, if an efficient administrative management is carried out, according to the requirements of the entity then the collection of property tax in the municipality of Condorcanqui, Peru can be significantly increased.

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“…We also contribute to a large empirical literature on property taxes and a small but growing empirical literature on spillover effects in tax compliance. On property taxes, recent contributions include Brockmeyer et al (2020) study of Mexico City, Bergeron, Tourek and Weigel (2021) and Weigel (2020) for the Democratic Republic of Congo, and Krause (2020) for Haiti, among others. The latter two are randomized controlled trials, and in both cases the authors address the presence of spillovers, but in ex-post analysis rather than in the experimental designs.…”

Section: Introductionmentioning

confidence: 99%

Design of partial population experiments with an application to spillovers in tax compliance

Tortarolo¹,

Cruces²,

Vázquez-Baré³

2023

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We develop a framework to conduct experiments for estimating direct and spillover effects when units are grouped into mutually exclusive clusters. Crucially, our framework accounts for heterogeneous treatment effects across clusters and heterogeneous cluster sizes, which are pervasive in empirical settings but typically ignored in experimental design. We show that failing to account for cluster heterogeneity in experimental design can severely overestimate power and underestimate minimum detectable effects. We study the large-sample behavior of OLS estimators for direct and spillover effects with heterogeneous clusters and use our results to derive simple formulas to calculate power, minimum detectable effects and optimal cluster assignment probabilities. We also set up a potential outcomes framework that justifies interpreting OLS estimands as causal effects. We apply our methods to design a large-scale experiment to estimate the spillover effects of a communication campaign on property tax compliance. We find an increase in tax compliance among individuals directly targeted with our mailing, as well as compliance spillovers on untreated individuals in street blocks with a high proportion of treated taxpayers.

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Taxing Property in Developing Countries: Theory and Evidence from Mexico

Cited by 18 publications

References 0 publications

The taxman cometh: Pathways out of a low‐capacity trap in the Democratic Republic of the Congo

The taxman cometh: Pathways out of a low‐capacity trap in the Democratic Republic of the Congo

Administrative management in the collection of property tax in the municipality of Condorcanqui, Peru

Design of partial population experiments with an application to spillovers in tax compliance

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