TY - BOOK ID - 69245413 TI - Structural Transformation and Tax Efficiency AU - Cevik, Serhan. AU - Gottschalk, Jan. AU - Hutton, Eric. AU - Jaramillo, Laura. AU - Karnane, Pooja. AU - Sow, Moussé. PY - 2019 SN - 1484399811 1498301134 149830110X PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Public Finance KW - Taxation KW - Business Fluctuations KW - Cycles KW - Efficiency KW - Optimal Taxation KW - Business Taxes and Subsidies KW - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change KW - Industrial Price Indices KW - Taxation, Subsidies, and Revenue: General KW - Public finance & taxation KW - Economic growth KW - Value-added tax KW - Structural transformation KW - Tax efficiency KW - Tax gap KW - Revenue administration KW - Spendings tax KW - Tax administration and procedure KW - Economic development KW - Revenue UR - https://www.unicat.be/uniCat?func=search&query=sysid:69245413 AB - Structural transformation has resulted in an increasing share of services in aggregate value-added in advanced and developing countries across the world. We analyze the impact of this shift into services on countries’ efficiency in collecting the value-added tax (VAT). The analysis is based on two alternative measures of VAT efficiency: (1) the VAT C-efficiency, using a broad panel of 134 countries over the period 1970-2014; and (2) the VAT gap using a more granular, proprietary dataset that draws on the results of IMF’s Revenue Administraion-Gap Analysis Program covering 24 countries over the period 2004-2016. We find that a higher share of services in aggregate value-added reduces the VAT efficiency, and that this adverse effect is mainly a result of a rise of non-tradable services, which in turn contributes to a narrowing of the VAT base. ER -