2024-03-28T08:50:00Zhttp://digital.csic.es/dspace-oai/requestoai:digital.csic.es:10261/19042016-02-16T01:59:56Zcom_10261_58com_10261_7col_10261_689
On the Relation between Tax Rates and Evasion in a Multi-period Economy
Caballé, Jordi
Panadés, Judith
Tax evasion
Growth
We extend the basic tax evasion model to a multi-period economy exhibiting sustained growth. When individuals conceal part of their true income from the tax authority, they face the risk of being audited and hence of paying the corresponding fine. Both taxes and fines determine individual saving and the rate of capital accumulation. In this context we show that the sign of the relation between the level of the tax rate and the amount of evaded income is the same as that obtained in static setups. Moreover, high tax rates on income are typically associated with low growth rates as occurs in standard growth models that disregard the tax evasion phenomenon.
2007-11-06T10:33:32Z
2007-11-06T10:33:32Z
2001-10-23
documento de trabajo
http://hdl.handle.net/10261/1904
eng
UFAE and IAE Working Papers
500.01
openAccess