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Redistribution through tax evasion

Author

Listed:
  • Adam, Antonis
  • Kammas, Pantelis

Abstract

Using a simple model of income redistribution, we show that the government may use tax evasion as a way to redistribute income from the non- evaders to evaders. This will result then to a negative association between income inequality and per capita transfers and inefficiently high taxes.

Suggested Citation

  • Adam, Antonis & Kammas, Pantelis, 2011. "Redistribution through tax evasion," MPRA Paper 34803, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34803
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    File URL: https://mpra.ub.uni-muenchen.de/38567/1/MPRA_paper_38567.pdf
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    References listed on IDEAS

    as
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    3. Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-187, June.
    4. Rainald Borck, 2009. "Voting on redistribution with tax evasion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(3), pages 439-454, March.
    5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    6. repec:bla:revinw:v:23:y:1977:i:4:p:405-11 is not listed on IDEAS
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    Cited by:

    1. Chiarini, Bruno & Ferrara, Maria & Marzano, Elisabetta, 2022. "Tax evasion and financial accelerator: A corporate sector analysis for the US business cycle," Economic Modelling, Elsevier, vol. 108(C).
    2. Bruno Chiarini & Maria Ferrara & Elisabetta Marzano, 2018. "Credit Channel and Business Cycle: The Role of Tax Evasion," CESifo Working Paper Series 7169, CESifo.

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    More about this item

    Keywords

    redistribution; inequality; tax evasion;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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