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corruption in the administration, these outcomes become more likely. …
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We introduce bureaucratic corruption in a simple way and examine its effect on government revenue when policies change …. If corruption is low enough, revenues garnered from capturing people cheating may exceed those from choosing an audit … structure in which everyone declares their true income. We also examine a case in which corruption is endogenous …
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This paper shows a standard RBC model, when augmented with a VAT evasion channel, where evasion depends on the consumption tax rate, can produce a hump-shaped consumption Laffer curve. Furthermore, when the evasion channel is turned off, the hump in the Laffer curve disappears, resulting in a...
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Important as it is for public policy, there is still no consensus about the size of the revenue-maximizing tax rate at the top of the Laffer curve. The purpose of this essay is not to supply a correct rate, but to identify difficulties in doing so. 1) Estimates of the revenue-maximizing tax rate...
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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...
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