01151nam a22001457a 4500100003800000245005300038260004500091300000800136490003800144520068300182650000800865856011200873942000700985999001300992  aKleven, H., Khan, A. and Kaul, U.  aTaxing To Develop: When ‘Third-Best’ Is Best  aLondonbInternational Growth Briefc2016  a8p.  aGrowth Brief | STATE | April 2016  aInability to tax is both a symptom and cause of underdevelopment. In countries with large informal economies, tax policies must account for gaps in monitoring, reporting, and administration to overcome barriers to tax enforcement and collection. Developing country governments are often characterised by poor public service delivery. Without the benefits of public goods and services, citizens have few incentives to pay taxes. This brief presents a rethinking of tax policy. Traditional tax models assume a ‘second-best’ approach where, in the absence of perfect information (‘first-best’ conditions), tax authorities face some informational barriers to tax collection.  aTax  uiffoadatabase.trustafrica.org/iff/taxing-to-develop-when-third-best-is-best-igc-growth-brief-april-2016.pdf  cCF  c759d759