Our statistical results confirm the hypothesis of a general upward shift in the spending function between 1971 and 1975. Both the constant and most coefficients of our estimated spending functions increased since 1971 indicating an increase in both the average and marginal propensity to spend....

The paper suggests an explanation for the geographical dimension of tax evasion that focuses on the structure of territorial government. Taxes administered by the central government are not differentiated by regions. Poor areas may prefer a combination of lower taxes and lower levels of public...