Assessing Overall Fiscal Effort in Eca, 1995-2004

42 Pages Posted: 14 Feb 2012

See all articles by Emilia Skrok

Emilia Skrok

affiliation not provided to SSRN

Aristomene Varoudakis

World Bank

Date Written: March 29, 2007


This paper uses the method of measuring tax capacity and tax effort to analyze how well ECA countries are utilizing their tax capacities, relative to the average performance across countries. Among the variables that have been identified to be determinants of tax shares are: (i) tax evasion, and (ii) control of corruption, although they are found to be less important than conventional factors. The tax effort indices obtained show that generally the ECA countries are making better use of their tax bases to increase revenue than countries from Latin America or East Asia. However, there are substantial variations in tax effort among ECA countries and several countries have the potential to increase revenues via making better use of their tax bases (increased tax effort), and improving the quality of their institutions. Our results can be used to provide guidance on the proper mix of fiscal policy in the event of budgetary imbalance or growing debt burdens.

Suggested Citation

Skrok, Emilia and Varoudakis, Aristomene, Assessing Overall Fiscal Effort in Eca, 1995-2004 (March 29, 2007). Available at SSRN: or

Emilia Skrok (Contact Author)

affiliation not provided to SSRN ( email )

Aristomene Varoudakis

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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