کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
969754 | 1479464 | 2012 | 10 صفحه PDF | دانلود رایگان |
We estimate social externalities of tax evasion in a model where congestion of the auditing resources of local tax authorities generates a social multiplier. Identification is based on a contrast of the variance of tax evasion at different levels of aggregation. We use a unique data set that contains audits of about 80,000 small businesses and professionals in Italy and also provides an exact measure of reference groups in our model. We find a social multiplier of about 3, which means that the equilibrium response to a shock that induces an exogenous variation in mean concealed income is about 3 times the initial average response. This is a short-run effect that persists to the extent that auditing resources are not adjusted to internalize the congestion externality.
► We study social externalities in tax evasion, generated by short-run auditing congestion.
► We map a benchmark model of taxpayer behavior into a workhorse statistical model of social interactions.
► We focus on Italy as a case study, employing a unique administrative dataset of tax audits.
► We employ a relatively new estimation technique developed by Graham (2008).
► We find a social multiplier of about 3.
Journal: Journal of Public Economics - Volume 96, Issues 5–6, June 2012, Pages 485–494