Tax revenues, fiscal corruption and "shame" costs
In this paper we explore tax revenues in a regime of widespread fiscal corruption in a static framework. We prove that the relationship between the tax rate and tax revenues depends on the relevance of the "shame effect" of being detected in a corrupt transaction. In countries with a "low shame" effect, tax revenues grow as the tax rate increases. Moreover, there is a critical tax rate where the growth rate of tax revenues begins to reduce. In countries with a high "shame effect" tax revenues increase up to a threshold value and then decrease.
Year of publication: |
2009
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Authors: | Cerqueti, Roy ; Coppier, Raffaella |
Published in: |
Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 26.2009, 6, p. 1239-1244
|
Publisher: |
Elsevier |
Subject: | Corruption Evasion Tax revenues |
Saved in:
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