Cerqueti, Roy; Coppier, Raffaella - In: Economic Modelling 26 (2009) 6, pp. 1239-1244
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 …