Pecunia olet. Cash usage and the underground economy

Giammatteo, Michele; Iezzi, Stefano; Zizza, Roberta

doi:10.1016/j.jebo.2022.10.005

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2022

2024

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Cited by 8 publications

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“…The conceptual framework behind my analysis is based on those models. Giammateo, Iezzi and Zizza (2022) instead present an empirical analysis of the effect of cash use on evasion in Italy.…”

Section: Introductionmentioning

confidence: 99%

Cash thresholds, cash expenditure and tax evasion

Russo

2022

Fiscal Studies

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I investigate whether cash thresholds that forbid cash payments on big transactions are effective at reducing tax evasion. I find that the 1000 euros threshold implemented in Italy in 2011 induced a bigger cash expenditure reduction for the households with self employed members, and the more so in case they work in cash intensive sectors. With the help of a simple model, I show that this empirical evidence suggests a tax evasion reduction, and I compute the tax revenue increase implied by the empirical estimates. Calibrating the model, I also perform a counterfactual exercise to quantify the potential effects of lower thresholds.

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Section: Introductionmentioning

confidence: 99%