IDEAS home Printed from https://ideas.repec.org/p/isa/wpaper/111.html
   My bibliography  Save this paper

Why is the Tax Evasion so Persistent?

Author

Listed:
  • Maurizio Bovi

    (ISAE - Institute for Studies and Economic Analyses)

  • Roy Cerqueti

    (University of Macerata - Dept. of Economic and Financial Institutions)

Abstract

Virtually all governments seek to fight tax evasion exploiting better and better technological devices. Despite of that the phenomenon still remains alive and kicking all around the world. The foregoing naturally arises the question in the title. This paper develops a simple model to provide some answers to this puzzling issue. Tax evasion is persistent because of the taxpayer's opportunistic behavior and the complex relationships linking it to the cost/quality of the institutional setting. More fundamentally, our model highlights that conditions required for steady state zero-tax evasion (no taxation and/or 100$\%$ probability to be caught) are outside the strategies available for governments.

Suggested Citation

  • Maurizio Bovi & Roy Cerqueti, 2009. "Why is the Tax Evasion so Persistent?," ISAE Working Papers 111, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    • Handle: RePEc:isa:wpaper:111
    as

    Download full text from publisher

    File URL: http://lipari.istat.it/digibib/Working_Papers/WP_111_2009_Bovi.pdf
    Download Restriction: no
    ---><---

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. IL CLUB MED DELLA PUBBLICA AMMINISTRAZIONE
      by Maurizio Bovi in La Voce on 2012-01-17 18:00:00

    More about this item

    Keywords

    Bureaucracy; Tax evasion; Regulations.;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isa:wpaper:111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefania Rossetti (email available below). General contact details of provider: https://edirc.repec.org/data/istgvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.