Tax Evasion, Tax Monitoring Expenses and Economic Growth- An Empirical Analysis in OECD Countries
AbstractBased on an endogenous growth model, we extent Roubini and Sala-i-Martin (1993) theoretical framework to analyse empirically the relationship between economic growth, announced tax rate and tax monitoring expenses using data from 32 OECD countries during the 1999-2007 period. Our results indicate that high announced tax rates above the elasticity of private capital and excess expenses on tax auditing as means of reducing tax evasion are not effective deepening rather recession.
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Bibliographic InfoPaper provided by University of Crete, Department of Economics in its series Working Papers with number 1308.
Length: 12 pages
Date of creation: 29 Jun 2013
Date of revision: 17 Oct 2013
statutory tax rate; tax monitoring; tax evasion; GDP growth;
Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-08-05 (Accounting & Auditing)
- NEP-ALL-2013-08-05 (All new papers)
- NEP-FDG-2013-08-05 (Financial Development & Growth)
- NEP-IUE-2013-08-05 (Informal & Underground Economics)
- NEP-PBE-2013-08-05 (Public Economics)
- NEP-PUB-2013-08-05 (Public Finance)
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