Who Benefits from Tax Evasion?
AbstractIn this paper, we examine the distributional effects of tax evasion, using results from theoretical, experimental, empirical, and especially the general equilibrium literatures on tax evasion. Much, if not all, of this evidence concludes that the main beneficiaries of successful tax evasion are the tax evaders themselves, with distributional effects that largely favor higher income individuals. However, when general equilibrium adjustments in commodity and factor prices are considered, the distributional effects become considerably more complicated. The work on tax compliance is also put in the broader context of the distributional effects of other types of criminal activities, where similar forces seem to be at work. We conclude with some suggestions for future research.
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Bibliographic InfoPaper provided by Tulane University, Department of Economics in its series Working Papers with number 1214.
Length: 40 pages
Date of creation: Jul 2012
Date of revision:
tax evasion; general equilibrium;
Other versions of this item:
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-08-23 (Accounting & Auditing)
- NEP-ALL-2012-08-23 (All new papers)
- NEP-IUE-2012-08-23 (Informal & Underground Economics)
- NEP-PBE-2012-08-23 (Public Economics)
- NEP-PUB-2012-08-23 (Public Finance)
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