Issues in Extractive Resource Taxation: A Review of Research Methods and Models
IMF Working Papers, December 6, 2012
Source details
- Canonical URL
- Issues in Extractive Resource Taxation: A Review of Research Methods and Models
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Bibliographic details
- Authors: James L. Smith
- Published: December 6, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475573466.001
Overview
- Author: James L. Smith
- Publication date: December 6, 2012
- Type: IMF Working Paper (Working Paper No. 2012/287)
- Purpose: Provides a conceptual overview of economists’ attempts to learn about the effects of taxes on extractive resources, emphasizing research methods and techniques rather than tabulating empirical results or prescribing preferred tax instruments or systems.
Main arguments and findings
- The nature of conclusions about extractive resource taxation largely depends on the researcher’s choice of modeling framework.
- Many alternative frameworks and approaches have been developed in the literature.
- The paper aims to describe differences among frameworks and to note their strengths and limitations.
- Emphasis is on research methods and techniques; no comprehensive tabulation of previous empirical results or policy conclusions is attempted.
Emphasis on methods and limitations
- Focuses on conceptual discussion of methods used to assess effects of taxes on extractive resources.
- Does not provide policy prescriptions or exhaustive empirical comparisons of tax instruments or systems.
- Highlights that differing modeling frameworks can lead to differing conclusions about tax effects.
Subject coverage and keywords
- Subjects: Commodities; Economic sectors; Marginal effective tax rate; Mining sector; Oil; Oil, gas and mining taxes; Tax policy; Taxes
- Keywords: cash flow; extractive enterprise; extractive resources; firm; fiscal regimes; gas and mining taxes; investment strategy; Marginal effective tax rate; Mining sector; North America; Oil; production function; rate of return; risk-neutral firm; tax; tax instrument; tax neutrality; tax policy; tax rate; tax regime; tax shield; taxes gain; WP