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Intra-household Tax Avoidance: An Application to Swedish Household Data

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Author Info
Aronsson, Thomas () (Department of Economics, Umeå University)
Daunfeldt, Sven-Olov () (Department of Economics, Umeå University)
Wikström, Magnus () (Department of Economics, Umeå University)

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Abstract

This paper analyzes whether households use house interest deductions to minimize family tax payment. By applying a household model in which tax deductions are associated with a cost, we relate the likelihood of minimizing the tax payment to variables associated with the budget constraint and other household characteristics. The results show that 88 percent of the households follow an optimal (arbitrage free) avoidance strategy, and the likelihood of minimizing taxes is influenced by income, age and house ownership experience.

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Publisher Info
Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 572.

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Length: 18 pages
Date of creation: 01 Nov 2001
Date of revision:
Handle: RePEc:hhs:umnees:0572

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Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
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Web page: http://www.econ.umu.se/
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Related research
Keywords: Income taxation; Tax avoidance; Housing deductions;

Find related papers by JEL classification:
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Melvin Stephens Jr. & Jennifer Ward-Batts, 2001. "The Impact of Separate Taxation on the Intra-Household Allocation of Assets: Evidence from the UK," NBER Working Papers 8380, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Joel Slemrod & Shlomo Yitzhaki, 2000. "Tax Avoidance, Evasion, and Administration," NBER Working Papers 7473, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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