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Pesos or Plastic?

Financial Inclusion, Taxation, and Development in South America

Authors: Mitchell, Ken, Scott, III, Robert H.

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  • Shows financial inclusion contributes to better tax collection by encouraging more formal consumer transactions via the use of bank-provided credit and debit cards
  • Argues that the higher a country’s BPR the greater the economic impact
  • Includes a case study of Argentina focuses on the intersection of financial inclusion and public revenue or taxation
  • Finds that changes in formal banking participation rates and increased credit card and debit card use are correlated with increased VAT revenue
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eBook $44.99
price for USA (gross)
  • ISBN 978-3-030-14876-8
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $59.99
price for USA
  • ISBN 978-3-030-14875-1
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

The book covers financial inclusion in the southern cone (Argentina, Brazil, and Chile) and its impact on public finance. Possible negative consequences of greater financial inclusion are identified, but the book argues potential benefits outweigh costs. Financial inclusion has many definitions, but in this book, we interpret it as bank account ownership and the use of banking services. Financial inclusion in this context proffers advantages in the area of tax collection, perhaps the southern cone’s gravest economic obstacle given its future debt servicing commitments and its socioeconomic development challenges.

Households with a bank account – or, the bank participation rate – began increasing significantly around 2002, and this increase has coincided with an unexpected rise in tax collection (especially value-added taxes (VAT)) spanning periods of macroeconomic growth (2003-2009) and stagnation (2010-2015). Correlation does not imply causation, yet using empirical methods this book shows financial inclusion contributes to better tax collection by encouraging more formal market transactions via the use of bank-provided credit and debit cards. Consumption represents the largest component of most economies and consumption taxes contribute more to public revenue in the southern cone than other taxes, hence more formal consumption enhances overall tax collection.

About the authors

Ken Mitchell is chair and associate professor in the Department of Political Science and Sociology at Monmouth University, USA. His political economy research on Mexico, Argentina, Brazil, and The Dominican Republic appears in Bulletin of Latin American Research, The Latin Americanist, Oxford Development Studies, Challenge, Monthly Review, and Journal of Post-Keynesian Economics. He is the author of State-Society Relations in Mexico published by Ashgate (2001).

Robert H. Scott, III is professor in the Department of Economics, Finance, and Real Estate at Monmouth University, USA. He teaches Econometrics; Financial Institutions and Risk Management; Macroeconomics and Political Economy. His research publications focus on consumer debt, applied econometrics, financial literacy, small business financing, financial markets and Kenneth Boulding. He is the author of Kenneth Boulding: A Voice Crying in the Wilderness (2015) published by Palgrave Macmillan and included in the Great Thinkers in Economics book series.

Table of contents (3 chapters)

Table of contents (3 chapters)
  • Financial Inclusion and the Middle of the Pyramid, a New Public Revenue Strategy for the Twenty-First Century

    Pages 1-32

    Mitchell, Ken (et al.)

  • Public Revenue, Financial Inclusion and Value-Added Tax in Argentina

    Pages 33-58

    Mitchell, Ken (et al.)

  • Financial Inclusion and Value-Added Taxes in Argentina, Brazil and Chile

    Pages 59-83

    Mitchell, Ken (et al.)

Buy this book

eBook $44.99
price for USA (gross)
  • ISBN 978-3-030-14876-8
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $59.99
price for USA
  • ISBN 978-3-030-14875-1
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.

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Bibliographic Information

Bibliographic Information
Book Title
Pesos or Plastic?
Book Subtitle
Financial Inclusion, Taxation, and Development in South America
Authors
Copyright
2019
Publisher
Palgrave Pivot
Copyright Holder
The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
eBook ISBN
978-3-030-14876-8
DOI
10.1007/978-3-030-14876-8
Hardcover ISBN
978-3-030-14875-1
Edition Number
1
Number of Pages
XVIII, 90
Number of Illustrations
1 b/w illustrations, 9 illustrations in colour
Topics