Regional tax evasion and audit enforcement

Carfora, Alfonso; Pansini, R; Pisani, Stefano

doi:10.1080/00343404.2017.1299934

Cited by 16 publications

(10 citation statements)

References 35 publications

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“…In this model, the coefficient of the dynamic component or persistence (γ) is significant, which means that the average taxpayer learns over time. His or her tax behavior today depends positively on what he or she did in the past, as found by Alm and Yunus (2009) and Carfora, Vega, and Pisani (2018), although in the latter, separately from spatial dependence. As mentioned above, the spatial correlation coefficient (ρ) is also significant, indicating that there is a regional interaction in the tax compliance decision and that this interaction is positive, the same result found by Alm and Yunus (2009) for the United States and Carfora, Vega, and Pisani (2018) for Italy.…”

Section: Estimates Of the Factors Explaining Irpf Compliance In Regionsmentioning

confidence: 82%

“…Later, Di Caro and Nicotra (2014) for the period 2007–2011, and Carfora, Vega, and Pisani (2018) for the period 2001–2011, analyze tax compliance for the Italian regions, also using spatial econometric models, although the paper of Carfora, Vega, and Pisani (2018) is not limited to income tax but analyzes total tax gap.…”

Section: Introductionmentioning

confidence: 99%

“…The cited paper by Alm and Yunus (2009) has a special interest because, as well as adding the spatial dimension to the analysis of tax evasion, it includes its dynamic component (already present in the original contribution of Allingham and Sandmo 1972), that is, the fact that the degree of tax compliance in a region may depend on its compliance in previous years. 2 Carfora, Vega, and Pisani (2018) also take into account the dynamic component of tax evasion but independently of the spatial component. The dynamic component should not be ignored in estimates of tax evasion, since it can explain part of the evasive behavior of the taxpayers.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

Laborda

Giménez

Zárate‐Marco

2020

International Regional Science Review

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This article quantifies personal income tax compliance by regions for the first time in Spain and identifies the factors explaining differences in tax compliance between regions, an aspect that has scarcely been analyzed in the literature. To this end, and in addition to the dynamic and spatial components considered by Alm and Yunus, this article considers the variables included in the classical tax evasion model of Allingham and Sandmo, as well as tax morale and political-institutional variables, including those linked to the country’s fiscal decentralization. The results obtained confirm, on one hand, those reached in the very extensive literature studying tax evasion from the individual perspective (including the importance of the dynamic element) and, on the other, the relevance of the spatial component in explaining tax compliance, so that greater or lesser tax compliance is partly explained by factors such as the tax behavior of neighbors or how those neighbors are treated by the public sector.

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Section: Estimates Of the Factors Explaining Irpf Compliance In Regionsmentioning

confidence: 82%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

Laborda

Giménez

Zárate‐Marco

2020

International Regional Science Review

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“…We argue that spatial measurement models can more accurately characterize the relationship between local government debt and regional economic growth. In the spatial econometrics literature, scholars often use the spatial lag model (SLM), spatial error model (SEM), and SDM to investigate spatial correlation [57][58][59]. Spatial effects may occur simultaneously in the spatial lag of the dependent variable and the variation of the error term caused by the random impact.…”

Section: Basic Regression Modelmentioning

confidence: 99%

The Effect of Local Government Debt on Regional Economic Growth in China: A Nonlinear Relationship Approach

et al. 2019

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By drawing on the concept of sustainable economic development, this study advances the research on debt sustainability in the economic literature. We explore the correlation between local government debt and regional economic growth in 30 provinces in China. Previous studies have established that the development of economic growth between regions is not independent and we, therefore, investigate the spatial effect of regional economic growth due to the existence of a spatial spillover effect or spatial expansion among regions. Using Moran’s scatter plot, a Local Indicator of Spatial Association (LISA) map, and a semiparametric spatial model (SE-SDM), our results demonstrate the following: (1) the spatial agglomeration effect has a significant influence on regional economic growth; (2) the relationship between local government debt and regional economic growth presents nonlinear characteristics, rather than having an inverted U-shaped relationship; (3) the semiparametric spatial model more accurately characterizes in the nonlinear relationship between local government debt and regional economic growth compared to a basic regression model and the spatial Durbin model; and (4) when the scale of local government debt exceeds a certain level, economic growth will be suppressed by the crowding-out of private investment and the reduction of public expenditure.

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“…Andreoni et al 1998, Cerqueti and Coppier, 2011, Orsi et al 2014, Bovi and Cerqueti, 2014, Argentiero and Bollino, 2015 and empirically (see e.g. Carfora et al 2017); on the other hand, an increase in the tax rates may reduce tax compliance (see e.g. Gutmann 1977, Clotfelter 1983, Myles and Naylor 1996.…”

Section: Introductionmentioning

confidence: 99%

Public Debt Management and Tax Evasion

Argentiero

Cerqueti

2019

Macroecon. Dynam.

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This paper deals with the optimal management of the public debt-to-GDP ratio. We specifically focus on a contrasting tax evasion-based strategy for controlling the debt-to-GDP ratio. Two devices can be employed by the policymaker: by the one side, the tax rate is to be applied to the tax payers; by the other side, the monitoring activity is to be performed in order to detect the evaded taxes. To pursue our scopes, a stochastic control problem is developed and solved. Some numerical experiments validate the theoretical proposal and lead to an intuitive discussion of the obtained findings.

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Regional tax evasion and audit enforcement

Cited by 16 publications

References 35 publications

Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

The Effect of Local Government Debt on Regional Economic Growth in China: A Nonlinear Relationship Approach

Public Debt Management and Tax Evasion

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