Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5101775 | Journal of Public Economics | 2017 | 10 Pages |
Abstract
This paper sets out a framework for analyzing optimal interventions by a tax administration, one that parallels and can be closely integrated with established frameworks for thinking about optimal tax policy. Its key contribution is the development of a summary measure of the impact of administrative interventions-the “enforcement elasticity of tax revenue”-that is a sufficient statistic for the behavioral response to such interventions, much as the elasticity of taxable income serves as a sufficient statistic for the response to tax rates. Among the applications are characterizations of the optimal balance between policy and administrative measures, and of the optimal compliance gap.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Michael Keen, Joel Slemrod,