Grégoire Rota-Graziosi

• Professor
• Professor at University of Clermont Auvergne

Tax holidays remain essential to attract investment in Africa and, more broadly, in developing countries. However, this tax incentive must be better designed to target relevant firms or investments. Based on 2020 tax information, we compute the Effective Average Tax Rate (EATR) of a representative firm with and without investment incentives for 44...

Benin is a small, slow-growing economy whose development relies on two sources of rent that are controlled by self-centred elites: cotton export and illegal cross-border trade with Nigeria. Patrimonialism governs Beninese society as a forceful struggle for political power takes place between the oligarchs who control these sources and use them as f...

Financer les biens publics mondiaux avec le produit de taxes affectées est une idée régulièrement débattue et mise en pratique en France depuis le rapport Landau de 2004 et la taxe de solidarité sur les billets d'avion ou la taxe sur les transactions financières. Dans cet article, nous proposons une grille d'analyse d'un tel mécanisme de financemen...

We estimate the tax burden on the mobile telecommunication sector in twenty-five African countries. This tax burden encompasses not only standard and special taxes under the control of the Ministry of Finance (MoF) but also fees raised by the national telecommunication Regulatory Agency (RA). Given the lack of financial data at the country level, w...

Taxing aid was often discussed, but never implemented. This issue has now returned to the fore. First, many developing countries reform their tax system becoming more “reasonable” and eliminating one of the main justifications for aid-related tax exemptions. Second, the International Conference on Financing for Development held in Addis Ababa in Au...

Tax competition is often associated with the “race to the bottom:” a decrease in the tax rate of one jurisdiction (country, region or municipality)triggers similar reactions in neighboring jurisdictions. This race can be related to two properties of the tax competition game: positive tax spillovers and the strategic complementarity of tax rates. Us...

The aim of this paper is to generalize the endogenous timing game (ETG) proposed by Hamilton and Slutsky (Games and Economic Behavior, 1990, 2, 29 − 46) by allowing the payoff or the marginal payoff of a player to become non-monotonic with respect to the strategy of the opponent. We propose a taxonomy of the subgame perfect Nash equilibria (SPEs) b...

Tax Effort in Sub-Saharan African Countries: Evidence from a New Dataset This paper proposes (i) a new database of tax revenue for 42 sub-Saharan African countries (SSA) over the period 1980–2015, (ii) an estimate of the tax effort for these countries, and (iii) some replication analyses of previous tax effort estimations. The database results from...

The aim of this paper is to present a review of the legal, theoretical, and empirical aspects of secessions from an economic perspective. This survey provides interesting insights into recent events such as the Brexit and the threat of secession made for instance by Scotland and Catalonia. International law does not grant a general right to secede,...

We study the effect of decentralization on the access to some poverty-related public services in Benin. Compiling panel data from local governments' accounts and from surveys on 18,000 Beninese households performed in 2006 and 2007, our study suggests that decentralization has a positive overall effect on access to basic services. However, this eff...

We establish that the log-concavity of the inverse demand for capital, or equivalently the marginal production function, is a sufficient condition to ensure the supermodularity of the tax competition game, when jurisdictions maximize their tax revenue and under standard assumptions of the production function. The application of some results from su...

Cet article propose une revue de la littérature consacrée à la décentralisation dans les pays en voie de développement. Reprenant la distinction des fonctions de l’État établie par Musgrave (allocation redistribution et stabilisation) ainsi que deux principes généraux - le principe de proximité politique et celui de compétition – nous établissons u...

Decentralization has been put forward as a powerful tool to reduce povertyand improve governance in Africa. This paper will study the existence and identifythe nature of spillovers resulting from local expenditure policies. These spilloversimpact the efficiency of decentralization. We develop a two-jurisdiction model ofpublic expenditure, which dif...

Decentralization has been put forward as a powerful tool to reduce poverty and improve governance in Africa. This paper will study the existence and identify the nature of spillovers resulting from local expenditure policies. These spillovers impact the efficiency of decentralization. We develop a two-jurisdiction model of public expenditure, which...

Ogawa (Int Tax Public Financ 20(3):474–484, 2013) discusses the analysis of Kempf and Rota-Graziosi (J Public Econ 94(9–10):768–776, 2010a) by taking into account capital ownership in the government’s objective functions. He establishes that the unique subgame perfect Nash equilibrium (SPNE) of the endogenous timing game corresponds to the simultan...

We review the current state of the West African Economic and Monetary Union’s tax coordination framework, against the main objectives of the WAEMU Treaty of 1994: reduce distortions to intra-community trade, and mobilize domestic tax revenue. The process of tax coordination in WAEMU is one of the most advanced in the world—de jure at least—, but re...

The aim of this paper is to generalize the endogenous timing game (ETG) proposed by Hamilton and Slutsky ((1990) Games and Economic Behavior, 2, 29 − 46) to cases where the payoff or the marginal payoff of a player becomes non-monotonic with respect to the strategy of the opponent. We propose a taxonomy of the subgame perfect Nash equilibria (SPEs)...

The aim of this paper is to generalize the endogenous timing game (ETG) proposed by Hamilton and Slutsky ((1990) Games and Economic Behavior, 2, 29 − 46) to cases where the payoff or the marginal payoff of a player becomes non-monotonic with respect to the strategy of the opponent. We propose a taxonomy of the subgame perfect Nash equilibria (SPEs)...

The design of grants from central government to local government is an important issue in developing countries. In these countries the decentralisation process involves a vertical gap, i.e. an imbalance between the cost of local public competences and local governments’ revenue-raising powers. Our analysis considers the crowding-in (or crowding-out...

Decentralization in Developing Countries: A Literature Review This article offers a literature review on decentralization in developing countries. Considering the three economic functions of the State pointed out by Musgrave (stabilization, distribution and allocation) and two general principles – the proximity and the competition principles – we e...

L'Afrique, qui demeure le continent le moins exploré, contiendrait environ 30 % de tous les minerais de la planète. Pour des États riches de leurs ressources naturelles mais structurellement pauvres, l'établissement d'une société minière est une promesse de ressources substantielles. C'est une des clefs d'une croissance durable du continent. Ce dév...

Tax Coordination in the West African Economic and Monetary Union Tax coordination in the West African Economic and Monetary Union (WAEMU) is one of the most advanced in the world, de jure at least. Since the late 1990s, a number of indirect and direct tax directives have been produced, limiting member States in the conduct of their national tax pol...

We investigate whether foreign aid affects the probability of incumbent's re-election and then the Schumpeterian quality of democracy in developing countries. We present a simple theoretical framework, which captures the competitiveness of elections through the Tullock's approach based on the Contest Success Function. We obtain an ambiguous theoret...

We study the effect of decentralization on the access to some poverty-related public services in Benin. Compiling panel data from local governments' accounts and from surveys on 18,000 Beninese households performed in 2006 and 2007, our study suggests that decentralization has a positive overall effect on access to basic services. However, this eff...

Decentralization has been put forward as a powerful tool to reduce poverty and improve governance in Africa. The aim of this paper is to study the existence, and identify the nature, of spillovers resulting from local expenditure policies. These spillovers impact the efficiency of decentralization. We develop a two-jurisdiction model of public expe...

Cellini and Lambertini endogenize through a timing game the moves of the central bank and the private sector in a model of monetary policy la Barro and Gordon. They find a multiplicity of equilibria, as the two Stackelberg outcomes emerge as the solutions of the timing game, with different inflation levels. By using the risk-dominance criterion to...

In this paper we extend the standard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to move early or late, i.e. to fix their tax rate at a first...

This paper examines simultaneous versus sequential choice of effort in a two-player contest with a general contest success function. The timing of moves, determined in a pre-play stage prior to the contest-subgame, as well as the value of the prize is allowed to be endogenous. Contrary to endogenous timing models with an exogenously fixed prize the...

This paper examines simultaneous versus sequential choice of effort in a two player contest with a general contest success function. The timing of moves, determined in a pre-play stage prior to the contest-subgame, as well as the value of the prize is allowed to be endogenous. Contrary to endogenous timing models with an exogenously fixed prize the...

In this paper we extend the standard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to more early or late, i.e. to fix their tax rate at a first...

Without denying particular dimensions of the decentralisation in Sub-Saharan countries, this paper applies standard reasoning from the fiscal federalism literature to a developing country and tests the existence of strategic interactions among local Beninese governments, called 'communes'. We first propose a two-jurisdiction model of public expendi...

The aim of this paper is to generalize the endogenous timing game proposed by Hamilton and Slutsky (1990) to cases where the reaction functions are non-motononic, as for instance in the literature on contest. Following the taxonomy of social dilemma provided by Eaton (2004) we consider several pos- sible situations depending on the nature of intera...

Without denying particular dimensions of the decentralisation in Sub-Saharan countries, this paper applies standard reasoning from the fiscal federalism literature to a developing country and tests the existence of strategic interactions among local Beninese governments, called ‘communes’. We first propose a two-jurisdiction model of public expendi...

In this paper, we extend the stansard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to move early or late, i.e. to fix their tax rate at a first...

This note investigates the endogenous choice of leadership in commodity tax competition. We apply an endogenous timing game, where jurisdictions commit themselves to lead or to follow, to the Kanbur and Keen (1993) model. We show that the Subgame Pefect Nash Equilibria (SPNE) correspond to the two Stackelberg situations, yielding to a coordination...

This paper examines simultaneous versus sequential play in a simple two-player contest framework with a contest success function of the logit type. The timing of moves as well as the value of the prize is assumed to be endogenous. In a preplay stage to the basic contest subgame players decide whether they exert effort as soon, or as late as possibl...

In many developing countries, Pre-Shipment Inspection (PSI) programmes have been implemented to fight against corruption within customs administrations. This involves delegating the inspection of imports to private PSI firms operating in the exporting countries. The programmes are particularly costly since these firms generally charge between 0.5 %...

We consider as endogenous the choice of the delegation rule in an international agreement between two countries. We study three potential types of delegation: strong, weak or no delegation, the latter case corresponding to direct democracy. We show that populations decide to bind themselves by delegating the national policy decision-making to a "po...

Preshipment inspection programs are implemented in many developing countries to fight customs corruption. They consist in delegating the inspection of imports to a private firm that operates in the exporting country. To study those PSI programs, we develop a hierarchical agency model where the government authority can rely on two supervisors, namel...

Dans de nombreux pays en voie de développement, des Programmes de Vérification des Importations (PVI) ont été instaurés pour combattre la corruption des administrations douanières. Ils consistent à déléguer l'inspection des importations à une entreprise privée qui opère dans les pays exportateurs. De tels programmes s'avèrent particulièrement coûte...

In this paper we extend the standard approach of horizontal tax competition by endogenizing the timing of decisions made by the competing jurisdictions. Following the literature on the endogenous timing in duopoly games, we consider a pre-play stage, where jurisdictions commit themselves to move early or late, i.e. to fix their tax rate at a first...

We develop a theoretical model where child labour results from a household’s trade-off between sending a child to school or to work. Education is considered as a risky investment, since the survival of the child is not certain. We explore the effects of public expenditure on education and health on child labour, specifying a transmission mechanism...

We address in this paper the issue of leadership when two governments provide public goods to their constituencies with cross border externalities as both public goods are valued by consumers in both countries. We study a timing game between two different countries: before providing public goods, the two policymakers non-cooperatively decide their...

The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987, AER). In their paper, Buchanan and Faith neglected an important effect: political separation affects markets and consequently individual private incomes.

The purpose of this article is to provide an economic analysis of the relationship between economic integration and political fragmentation. This follows previous contributions from Alesina et al (2000), Casella (2001, Casella and Feinstein (2002), or Leite-Monteiro and Sato (2003). We go a step further than these authors by assuming that economic...

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The purpose of this note is to correct an error in the seminal article on secession by Buchanan and Faith (1987). In their paper, Buchanan and Faith neglected the effect of political separation affects on markets, and consequently on individual private incomes.

African politics are often said to be dominated by ethnic divides, with the ensuing policies implemented by leaders being based almost exclusively on their ethnic power base. In this paper, we demonstrate that the identity of leaders matters for the attribution of development projects in the context of one of the largest Community-Driven Developmen...

This paper analyses, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to …nance it. We study this problem under both full and asymmetric information on the damage caused by th...

Formulating the classic Allingham and Sandmo [1972] tax compliance problem under Rank Dependent Expected Utility (RDEU) provides a simple explanation for the “excess” level of full compliance observed in empirical studies, which standard Expected Utility (EU) theory is unable to explain. RDEU provides a compelling answer to this puzzle, without the...

Relying on a theoretical model where child labor results from a risky choice between working or schooling, this paper aims at studying why do education ex-penditures fail to decrease child labor. We suggest an optimal composition of social expenditures which minimizes child labor for a given government's budget. A com-plementarity between social ex...

We consider the classic Allingham and Sandmo (1972) tax compliance problem in the context of the Choquet-Schmeidler Expected Utility (CSEU) model, using the Non-Extremal Outcome (NEO)-additive capacities proposed by Chateauneuf et al (2002), in which Knightian uncertainty (ambiguity) exists concerning the penalty rate faced in the case of an audit....

Nous développons un modèle théorique dans lequel le travail des enfants résulte d'un arbitrage de la part des ménages entre travail et scolarisation, l'éducation étant considéré comme un investissement en environnement risqué. Dans ce cadre, nous mettons en évidence et apprécions l'impact des dépenses publiques d'éducation et de santé sur le travai...

In a framework, where child labor results from a risky choice between working and schooling, we study the reason why public education expenditures may fail to reduce child labor. We determine an optimal composition of social expenditures between education and health which minimizes child labor for a given government's budget. This is tested with pa...

Formulating the classic Allingham and Sandmo [1972] tax compliance problem under Rank Dependent Expected Utility (RDEU) provides a simple explanation for the “excess” level of full compliance observed in empirical studies, which standard Expected Utility (EU) theory is unable to explain. RDEU provides a compelling answer to this puzzle, without the...

[eng] The Political Fragmentation : a Survey.The purpose of this paper is to provide a survey on political fragmentation. We present a simple formalization which allows the confrontation of different assumptions choosen by the authors. The heterogeneity of voters induces political fragmentation, while scale economies in public good's production or...

[eng] The Political Fragmentation : a Survey.The purpose of this paper is to provide a survey on political fragmentation. We present a simple formalization which allows the confrontation of different assumptions choosen by the authors. The heterogeneity of voters induces political fragmentation, while scale economies in public good's production or...

This paper provides a theoretical view of the central-local relationships in China. Decentralization and the autonomy of local governments have been a crucial element for the reform process. These intergovernmental …scal relations have been changing since 1978 and they are founded on a bargaining process. We propose a model, based on the Nash Barga...

Résumé Cet article propose une analyse économique de la sécession. Il s’inspire des travaux d’Alesina et Spolaore (1997), de Berkowitz (1997) et de Bolton et Roland (1997). Le raisonnement mené au niveau des Etats est largement transférable aux collectivités locales (régions, villes,…). Le recours à une représentation spatiale de la population nous...

This paper analyses, in a simple two-region model, the undertaking of noxious facilities when the central government has limited prerogatives. The central government decides whether to construct a noxious facility in one of the regions, and how to …nance it. We study this problem under both full and asymmetric information on the damage caused by th...

Courriel : G.Chambas@u-clermont1.fr Cette communication destinée à l'atelier renforcement des capacités « gouvernances locales et décentralisation » au Forum « Décentralisation et gouvernance locale » Nations Unies, (Vienne, 26-29 juin 2007) a été rédigée à la demande de l'UNDESA sur un financement du Ministère des Affaires Etrangères. Elle repose...

Mémoire de DEA : Economie mathématique et économétrie / Paris I ; session de 1997.