Seminar Papers, Institute for International Economic Studies, Stockholm University
Labour Supply Prediction When Tax Avoidance Matters
(), Mats Persson
() and Hans SacklÚn
Abstract: We examine how tax avoidance in the form of trade in
well-functioning asset markets affects the empirical study of labor supply.
We discuss the implications for tax policy analysis, and we show that a
failure to account for avoidance re-sponses may lead to huge errors when
predicting how tax reform affects labor supply, tax revenue, and the
welfare cost of taxation. In conclusion we argue that our model may explain
a number of otherwise hard to understand dimen-sions of tax payer
Keywords: labour supply; tax avoidance; asset markets; tax reform simulation; (follow links to similar papers)
JEL-Codes: H31; J22; (follow links to similar papers)
43 pages, September 28, 1999
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Hanna Christiansson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom