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Transparency and corruption: an optimal taxation policy

Author

Listed:
  • Jellal, Mohamed

    (Al Makrîsî Institut d’Economie, Rabat, Morocco)

  • Bouzahzah, Mohamed

    (University Mohamed V – Souissi, FSJES Salé, Morocco; Al Makrîsî Institut d’Economie, Rabat, Morocco)

Abstract

Under Principal-Agent-Supervisor paradigm, we examine in this paper how a tax collection agency changes optimal schemes in order to lessen the occurrence of corruption between the tax collector and the taxpayer. Indeed, the Principal, who maximizes the expected net fiscal revenue, reacts by decreasing tax rates when the supervisor is likely to engage in corrupt transaction with taxpayer. Therefore, the optimal policy against collusion and corruption may explain the rational of the greater reliance on indirect taxes than on direct taxes both in developed and developing countries.

Suggested Citation

  • Jellal, Mohamed & Bouzahzah, Mohamed, 2013. "Transparency and corruption: an optimal taxation policy," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 66-70.
    • Handle: RePEc:ris:eueclt:0017
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    Citations

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    Cited by:

    1. Asongu, Simplice & Nwachukwu, Jacinta, 2017. "Building Knowledge Economies in Africa: A Survey of Policies and Strategies," MPRA Paper 81701, University Library of Munich, Germany.
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Building Knowledge-Based Economies in Africa: A Systematic Review of Policies and Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1538-1555, December.
    3. Simplice A. Asongu & Christian L. Nguena, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: what have we learnt on policy syndromes and implications?," Research Africa Network Working Papers 14/001, Research Africa Network (RAN).
    4. Simplice Asongu & Christian Nguena, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: Lessons, Policies and Implications," Working Papers of the African Governance and Development Institute. 14/038, African Governance and Development Institute..
    5. Simplice A. Asongu & Vanessa S. Tchamyou, 2020. "Human capital, knowledge creation, knowledge diffusion, institutions and economic incentives: South Korea versus Africa," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 26-47, January.
    6. Simplice A. Asongu, 2017. "The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes, and Implications," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 596-637, June.
    7. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.

    More about this item

    Keywords

    Transparency; Principal-Supervisor-Agent; Corruption; Tax evasion;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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