Tax Evasion Across Industries: Soft Credit Evidence from Greece

Artavanis, Nikolaos T.; Morse, Adair; Tsoutsoura, Margarita

doi:10.2139/ssrn.2109500

Cited by 38 publications

(36 citation statements)

References 52 publications

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“…Greece), the available evidence (e.g. Artavanis et al, 2012 ;Pappadà and Zylberberg , 2015) reaches the same conclusion, i.e. that tax evasion among the self-employed is much higher than for those subject to third-party reporting.…”

Section: Theoretical Considerationsmentioning

confidence: 78%

The Modality of Fiscal Consolidation and Current Account Adjustment

Adam

Moutos

2017

CESifo Economic Studies

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Modality of Fiscal Consolidation and Current Account Adjustment Terms of use: Documents in AbstractIn this paper we argue that supply-side adjustments (i.e. the reallocation of productive resources between the traded and non-traded sectors) can be an important determinant of the output costs of current account adjustment. The argument relies on the fact that tax evasion is more prevalent in the non-traded sector, which is dominated by services and the self-employed. Heavy reliance on tax-based fiscal consolidations induces a reallocation of economic activity towards the nontraded sector, thus requiring a larger decline in domestic absorption (and output) per unit of improvement in the current account balance. Using IMF data for the period 1980-2011 we find that budget consolidations which rely more on tax increases than on spending decreases will be associated with larger output costs per unit of current account improvement.JEL-Code: E620, F320, F410.

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Section: Theoretical Considerationsmentioning

confidence: 78%

The Modality of Fiscal Consolidation and Current Account Adjustment

Adam

Moutos

2017

CESifo Economic Studies

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“…See, e.g., Schneider and Buehn (2013). Also, Artavanis et al (2012) reveal the important role in this respect played by members of professional associations. 20 The results from regressions using pooled OLS with dummies for Greece and the Spain-Portugal group are available upon request.…”

Section: Discussionmentioning

confidence: 96%

Market and political power interactions in Greece: an empirical investigation

et al. 2018

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In this paper, using a dynamic panel of 21 OECD countries, we find that, unlike the other OECD countries in the sample, wage setting institutions, competition conditions, public finances, and external imbalances can account for the behavior of the public sector wage premium (WPR) and the self-employed taxation gap (TSL) in Greece and to a lesser extent in Spain and Portugal, in a manner that is consistent with an "insider-outsider society" (IOS). That is, a politicoeconomic system characterized by groups of selfish elites that enjoy market power but at the same time cooperate in influencing government in protecting and promoting their collective self-interests. Then, we find that for Greece as well as Spain and Portugal, WPR and TSL have an adverse effect on both TFP and output growth. Finally, the effect of WPR and TSL on the business cycle (shock propagation mechanism) is investigated via a panel VAR analysis. Again, impulse response function analysis suggests that the shock propagation mechanisms of WPR and TSL for Greece and to a lesser extent for Spain and Portugal are quite different from the rest of the OECD countries. For example, in Greece, unlike the other OECD countries in the sample, a positive temporary shock in WPR causes TFP and output to fall and the public and current account deficits to increase. We take the TFP/output growth and the shock propagation mechanism results to provide strong evidence that Greece and to a lesser extent Spain and Portugal behave like IOS. For that matter, these results are important in order to understand the Greek crisis.JEL classification: J44, J45, O43, O47, O57, P16

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“…In contemporary financialised capitalism the penetration of finance in the activities of productive capital add still further complexity, see . 24 See Artavanis, Morse and Tsoutsoura (2012), who estimate that only in 2009 there were at least 28bn of unreported income by self-employed professionals, a tremendous sum by Greek standards. 25 For an acknowledgement of this point from the mainstream see Buti and Carnot (2012) and Obstfeld (2013).…”

Section: Fig 6 Real Interest Rates In the Eurozonementioning

confidence: 99%

Political Economy of the Greek Crisis

Lapavitsas

2018

Review of Radical Political Economics

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The Greek turmoil commenced as a balance of payments, or "sudden stop", crisis induced by large current account and primary government deficits. It became an economic and social disturbance of historic proportions. Its proximate cause was loss of competitiveness within the Eurozone due primarily to domestic German wage policies. The bail-out policies, imposed by the lenders primarily for reasons of Eurozone stability and adopted by Greece, have had disastrous effects on both economy and society. The "historical bloc" that dominates Greek society willingly submitted to this strategy, losing sovereignty, for reasons including fear and identity.

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Tax Evasion Across Industries: Soft Credit Evidence from Greece

Cited by 38 publications

References 52 publications

The Modality of Fiscal Consolidation and Current Account Adjustment

The Modality of Fiscal Consolidation and Current Account Adjustment

Market and political power interactions in Greece: an empirical investigation

Political Economy of the Greek Crisis

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