Data and Code for: No Taxation without Administration: Bringing the State Back into the Public Finance of Developing Countries

The empirical economics literature on taxation in developing countries has centeredon the importance of third-party information for enforcement. Yet, whilesurely a long-run objective, leveraging such information remains out of reachin many developing countries due to largely informal economies and low statecapacity. This article examines an emerging complementary literature focusedon strengthening the “sinews” of state capacity: tax administration. We arguethat reforms to the organizational structure, personnel management, and taskmanagement of tax authorities have potential to raise tax capacity in developingcountries. We also argue that efforts to improve the state’s legitimacy — popularacceptance of its right to tax — can increase capacity and may complementinvestments in tax administration. Our approach bridges a long-standing dividebetween how scholars in public finance and political economy approachtax capacity building in developing countries.