Gorodnichenko, Yuriy; Martinez-Vazquez, Jorge; Peter, … - In: Journal of Political Economy 117 (2009) 3, pp. 504-554
We examine the effects of Russia's 2001 flat rate income tax reform on consumption, income, and tax evasion. We use the gap between household expenditures and reported earnings as a proxy for tax evasion with data from a household panel for 1998-2004. We associate large and significant changes...