Can the Laffer curve become a policy tool for reducing tax evasion? : stratification of property tax collection by land use

We construct Laffer curves to evaluate the efficiency of local property tax collection based on a micro-level panel dataset referring to 2013–2016 and obtained from the Jerusalem municipality. Unlike previous literature, we apply a tractable ad hoc methodology, which, compared with the conventional approach, might prove to be more useful to practitioners and policy makers. Results indicate the efficiency of a tax policy designed to increase tax rates for on-sample taxpayers. According to one estimate, to preserve the same collected sum of payments as before, for the entire sample, the minimal anticipated required raise is 4.17% per annum.