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New research project: A Franco-German partnership on tax expenditures and the fiscal contract

Published on April 14, 2023 Updated on April 15, 2023

on the April 5, 2023

IDOS Bonn, CERDI, and Université Clermont Auvergne are launching a project on the fiscal contract in low- and middle-income countries.

TEFISCON, the "Tax Expenditures and the Fiscal Contract" project, is a German-French collaboration project financed by the Deutsche Forschungsgemeinschaft (DFG) and the Agence Nationale de la Recherche (ANR). The partners are the German Institute of Development and Sustainability (IDOS) and the CERDI, Université Clermont Auvergne, CNRS, and IRD.

Jean-François Brun (UCA, CERDI) and Christian von Haldenwang (IDOS), the project initiators, have decided to conduct this research on tax expenditures and the fiscal contract in low and middle-income countries. They will combine the macro- and microeconomic approaches to investigate the relationship between tax alleviation and the fiscal contract. The fiscal contract is a tacit agreement between taxpayers and the State. Taxpayers, individuals and businesses, comply with the tax rules, but in exchange, they expect good public services and to have a say in the political decision. This topic is not yet assessed for low and middle-income countries.

This partnership results from a long-term collaboration between IDOS and CERDI researchers. They share a high level of expertise in tax policy in developing countries. First, IDOS has produced, with the Council on Economic Policies (CEP), The Global tax expenditures database, which will be a very precious resource in this research thanks to its data on tax behavior and the institutional framework for a large number of countries (IDOS publications: The IDOS team also brings its expertise in tax expenditures and the fiscal contract. For years, the CERDI team has provided expertise and technical aid on tax and fiscal policies to developing nations and international institutions. Besides, both institutions have conducted many research projects on taxation and fiscal policy (see all the CERDI publications:

The CERDI is recruiting a PhD student that will join the team in Clermont-Ferrand in September 2023. He/She will be working with Jean-François Brun, Emilie Caldeira and Damien Cubizol.
He/She will construct and run field surveys and implement impact analyses in Uganda and Morocco.

See the call for applications.

More info on the project