Pre 1: Measuring Aid
** David Roodman Open Philanthropy Project**
Two kinds of aid rates: IMF unified and OECD DDRs
IMF unified rate: low-income 4%, lower-middle +2%, upper middle 1%
and the concessionality and interest rate is not continuous at some pointThe rate should also adjust for default risk
His paper is criticized by David Vines, as against the purpose of aid, which is not for profit making
Pre 2: IT and Fiscal Capacity in a developing country: evidence from Ethiopia
Abebe Shimeles African Development Bank
- Facts: in 2006, the average GDP share of government revenue in low income countries was 12.1%. However, for high income OECD countries, the figure stood at 25.2%
- Tools: Advances in information technology (IT) offer a cheaper possibility for gathering and analyzing a large amount of data on tax payers
- Experiment: introducing ESRM (electronic sales reporting machine)
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** Result**: VAT increased after introduced ESRM
Pre and Post VAT - ** Comment**: 1) seperate the groups and test for heteroskecity; 2) the VAT data is not for sure stationary,should do unit root model; 3) the corner solution in this case-those who was ruled out; 4) control for firm size; 5) endogenous problem: is ESRM creating some job opportunity and new business
- Another comment from macro guy: what about the cost of ESRM policy? geographical differences of ESRM?
