کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5053138 1476505 2017 11 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
To tax or not to tax? When does it matter for informality?
ترجمه فارسی عنوان
برای مالیات یا عدم مالیات؟ چه زمانی برای غیررسمی اهمیت دارد؟
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
چکیده انگلیسی


- Empirical studies find both positive and negative effects of tax on informality.
- Theoretical models predict only positive tax-informality relationships.
- This paper highlights a theoretical construct where both relationships arise.
- A tax-enforcement threshold exists beyond which taxes reduce informality.
- Threshold depends on level of financial development.
- Productive government expenditures do not matter for the threshold.

Theoretical models generally always predict or assume that higher taxes lead to larger informal sectors. Empirically, however, there is considerable debate on the effect of taxes on informality. In this paper I show that whether a positive, negative or non-relation arises between tax rates and informality depends on the degree of tax enforcement and the level of credit market development in an economy. Higher enforcement implies a higher probability of detection and punishment while more credit implies better formal sector access to finance. Both are incentives to become formal. In a two-sector dynamic general equilibrium model with borrowing constraints, I show that informality rises with the tax rate up to a threshold level of tax enforcement beyond which it falls as tax increases. This enforcement threshold depends negatively on the level of credit in the economy.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Economic Modelling - Volume 64, August 2017, Pages 117-127
نویسندگان
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