SSE/EFI Working Paper Series in Economics and Finance
No 454:
The Distributional Component of the Price of the Tax Avoidance Service
Tatiana Damjanovic ()
Abstract: The traditional avoidance literature undeservedly neglects
tax base distribution as a factor affecting the avoidance price, and
generally assumed to be equal to the avoidance cost. In reality, avoidance
providers are usually either high-skilled specialists or insiders. The
strong collusion thus, naturally seems to be an assumption of the behavior
of avoidance providers. Within such a framework, income distribution, which
forms an avoidance demand together with tax codes, plays a very essential
roll for the outcome of both avoidance price and quantity. My article
models an economy with a monopolistic avoidance provider and imperfect
information, and illustrates possible consequences of tax base changes. The
paper examines the relationship between inequality and a government's
ability to collect tax revenue, and also considers the possible outcome of
a tax base broadening. Furthermore, it provides an additional explanation
for the secession decision.
Keywords: Tax avoidance; optimal taxation; income distribution; endogenous prices; inequality; tax base broadening; secession.; (follow links to similar papers)
JEL-Codes: C72; D31; D42; D43; D69; D82; E61; E65; F15; G28; G29; H21; H24; H25; H31; H32; J61; K34; L12; O17; (follow links to similar papers)
40 pages, July 5, 2001, Revised December 3, 2001
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
hastef0454.pdf 
(644kB)
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
