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Tax compliance and wealth inequality

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  • Adriana Alventosa
  • Gonzalo Olcina

Abstract

In this work, we theoretically approach optimal taxing in a public good provision context in a society where wealth is Pareto distributed. Our main result shows that high levels of wealth inequality yield lower levels of tax compliance and, consequently, lower provision of public goods.

Suggested Citation

  • Adriana Alventosa & Gonzalo Olcina, 2020. "Tax compliance and wealth inequality," Applied Economics Letters, Taylor & Francis Journals, vol. 27(11), pages 899-903, June.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:11:p:899-903
    DOI: 10.1080/13504851.2019.1646859
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