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Tariff evasion with endogenous enforcement

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  • Bussy, Adrien

Abstract

I show theoretically and empirically that when the expected punishment for evading increases with the tariff rate, evasion via under-reporting may decrease when the tariff rate rises. Total evasion does not necessarily decrease, as importers use alternative ways to evade duties.

Suggested Citation

  • Bussy, Adrien, 2021. "Tariff evasion with endogenous enforcement," Economics Letters, Elsevier, vol. 207(C).
    • Handle: RePEc:eee:ecolet:v:207:y:2021:i:c:s0165176521003232
    DOI: 10.1016/j.econlet.2021.110046
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    References listed on IDEAS

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    1. Javorcik, Beata S. & Narciso, Gaia, 2008. "Differentiated products and evasion of import tariffs," Journal of International Economics, Elsevier, vol. 76(2), pages 208-222, December.
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    More about this item

    Keywords

    Tariff evasion; Tax enforcement; International trade; Corruption;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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