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Sound taxation? On the use of self-declared value

Author

Listed:
  • Haan, Marco A.
  • Heijnen, Pim
  • Schoonbeek, Lambert
  • Toolsema, Linda A.

Abstract

In the 16th century, foreign ships passing through the Sound had to pay ad valorem taxes, known as the Sound Dues. To give skippers an incentive to declare the true value of their cargo, the Danish Crown reserved the right to purchase it at the declared value. We show that this rule does not induce truth-telling, but does allow the authorities to effectively implement a given tax rate.

Suggested Citation

  • Haan, Marco A. & Heijnen, Pim & Schoonbeek, Lambert & Toolsema, Linda A., 2012. "Sound taxation? On the use of self-declared value," European Economic Review, Elsevier, vol. 56(2), pages 205-215.
  • Handle: RePEc:eee:eecrev:v:56:y:2012:i:2:p:205-215
    DOI: 10.1016/j.euroecorev.2011.09.003
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    References listed on IDEAS

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    4. Haan, Marco A. & Heijnen, Pim & Schoonbeek, Lambert & Toolsema, Linda A., 2012. "Sound taxation? On the use of self-declared value," European Economic Review, Elsevier, vol. 56(2), pages 205-215.
    5. Kim C. Border & Joel Sobel, 1987. "Samurai Accountant: A Theory of Auditing and Plunder," Review of Economic Studies, Oxford University Press, vol. 54(4), pages 525-540.
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    1. repec:eee:transe:v:109:y:2018:i:c:p:293-310 is not listed on IDEAS
    2. Haan, Marco A. & Heijnen, Pim & Schoonbeek, Lambert & Toolsema, Linda A., 2012. "Sound taxation? On the use of self-declared value," European Economic Review, Elsevier, vol. 56(2), pages 205-215.

    More about this item

    Keywords

    Signaling; Taxation;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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