IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Income Tax Evasion, Inequality and Poverty

  • Panos Pashardes

    ()

    (Department of Economics and Economics Research Centre, University of Cyprus)

  • Alexandros Polycarpou

    (Economics Research Centre, University of Cyprus)

This paper uses a consumer demand based method to estimate the extent to which households in Cyprus under-report their income from self-employment, capital income and income from agriculture. On the basis of these estimates, the size of black economy appears to be around 7–8% of GDP. We find that income under-reporting biases measures of inequality and poverty downwards, suggesting that egalitarian and antipoverty policies need to become more generous, but also more carefully targeted to avoid false entitlement to social benefits. The high tax free income undoubtedly helps reduce the size of the tax evasion problem in Cyprus.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.ucy.ac.cy/erc/documents/Full%20Text_Pashardes1208.pdf
Download Restriction: no

Article provided by University of Cyprus, Economics Research Centre in its journal Cyprus Economic Policy Review.

Volume (Year): 2 (2008)
Issue (Month): 2 (December)
Pages: 37-49

as
in new window

Handle: RePEc:erc:cypepr:v:2:y:2008:i:2:p:37-49
Contact details of provider: Postal: P O Box 20537, 1678 Nicosia
Phone: + 357 22892429
Fax: + 357 22892426
Web page: http://www.ucy.ac.cy/goto/ecorece/el-GR/HOME.aspx
Email:


More information through EDIRC

Order Information: Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:erc:cypepr:v:2:y:2008:i:2:p:37-49. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Shekersavva)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.