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, there is a critical tax rate where the growth rate of tax revenues begins to reduce. In countries with a high “shame effect” tax revenues increase up to a threshold value and then decrease.

Tax revenues, fiscal corruption and "shame" costs / Cerqueti, Roy; Coppier, Raffaella. - In: ECONOMIC MODELLING. - ISSN 0264-9993. - 26(6):(2009), pp. 1239-1244. [10.1016/j.econmod.2009.06.005]

Tax revenues, fiscal corruption and "shame" costs

CERQUETI, ROY;COPPIER, RAFFAELLA
2009

Abstract

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, there is a critical tax rate where the growth rate of tax revenues begins to reduce. In countries with a high “shame effect” tax revenues increase up to a threshold value and then decrease.
2009
Corruption; Evasion; Tax revenues
01 Pubblicazione su rivista::01a Articolo in rivista
Tax revenues, fiscal corruption and "shame" costs / Cerqueti, Roy; Coppier, Raffaella. - In: ECONOMIC MODELLING. - ISSN 0264-9993. - 26(6):(2009), pp. 1239-1244. [10.1016/j.econmod.2009.06.005]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1364512
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