@article{Hussain:294674,
      recid = {294674},
      author = {Hussain, Athar and Stern, Nicholas},
      title = {The Role of the State, Ownership and Taxation In  Transitional Economies},
      address = {1991-11},
      number = {2282-2019-4147},
      series = {IPR26},
      pages = {43},
      year = {1991},
      abstract = {The transition is discussed from the perspectives of the  Chinese reforms of the 1980s and the theory and experience  of taxation and tax reform in developed and developing  countries. The Chinese example is not a model for other  countries, but has many lessons, positive and negative. For  example: (i) the payoff to providing market incentives,  households and small farms can be rapid and large, without  immediate privatization; (ii) "limited private ownership"  may be desirable and feasible in the transition; (iii) the  building of the new institutions can be a lengthy process,  as opposed to macro stabilization which can be done  quickly. The transition requires a new social security  system to replace that previously provided by rationed and  subsidized "necessities" and by firms with their life-long  employment. It also requires a new tax system to replace  the reliance on enterprise profits. The "Western European"  model has some rationale as a long-term goal in basic  economic principles and experience at delivering the  revenue. The tax system in transition may have to be rather  different, however, from the long run. For example, it may  be advisable to have: (i) wage or employment taxes as a  precursor to the personal income tax; (ii) measures to  correct errors generated elsewhere in the transition, such  as gratuitous gains or losses; and (iii) measures to  alleviate distortions in the nascent markets.},
      url = {http://ageconsearch.umn.edu/record/294674},
      doi = {https://doi.org/10.22004/ag.econ.294674},
}