|
on Informal and Underground Economics |
| By: | D'Souza, Errol |
| Abstract: | The literature on tax evasion assumes that taxpayers wish to evade their taxes entirely and the only reason they do not do so is that there is some non-zero probability of being caught by the government. Also, it is assumed that government uses the taxes and fines from caught evaders on goods that it consumes which produce no utility to taxpayer-citizens. In a developing country, however, we argue that taxpayers use tax evasion to compensate for imperfect financial markets as well as government expenditure patterns that do not benefit them. We demonstrate that imperfect financial markets result in situations where when individuals find the chance of earning high returns from investments, it causes them to overcome their aversion to risk and participate in actuarially unfair tax evasion gambles. Also, tax evasion increases when either public goods are underprovided, or the government is sufficiently predatory , or the government directs policies at groups that the taxpayer is not a member of. In such a situation tax evasion is viewed by the taxpayer as a means of shifting the allocation of his income in favor of investments and away from government expenditure policies that give little benefit to him. |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14489&r=iue |
| By: | Blaufus, Kay; Möhlmann, Axel; Schwäbe, Alexander |
| Abstract: | Tax minimization strategies may lead to significant tax savings, which could, in turn, increase firm value. However, such strategies are also associated with significant costs, such as expected penalties and planning, agency, and reputation costs. The overall impact of firms' tax minimization strategies on firm value is, therefore, unclear. To investigate whether corporate tax minimization increases firm value, we analyze the stock price reaction to news concerning corporate tax avoidance or evasion. Our hand-collected dataset includes 139 tax news items regarding listed German firms over the period from 2003 to 2014. In contrast to previous research, we explicitly distinguish between news about legal tax minimization (tax avoidance) and illegal tax minimization (tax evasion). We show that stock market responses differ significantly between news items concerning legal and illegal activities. While we find negative abnormal returns for tax evasion news, we find positive abnormal returns for tax avoidance news. Our results do not indicate any reputation effect of legal tax minimization. Conversely, the positive market reaction to tax avoidance news is associated with firms that face high reputation risk. |
| Keywords: | tax avoidance,tax evasion,tax aggressiveness,tax risk,market reaction,event study |
| JEL: | G14 G30 H25 H26 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:arqudp:204&r=iue |
| By: | Mattéo Godin (CRED, University of Namur); Jean Hindriks (CORE, Université Catholique de Louvain) |
| Abstract: | The mobilization of domestic tax resource has become a key issue for developing countries. In this report, we provide some facts and figures on the levels and structures of taxation around the world with special attention to Low Income Countries, (LICs). We use the new ICTD database covering 203 countries with 40 tax items over the period 1980-2010. We discuss some principles of tax design in a global economy that are relevant for LICs. We also review some critical issues on corruption and compliance to see how they relate to growth and tax evasion. We then provide a benchmark framework to assess the overall performance of the government tax collection. We use the tax effort index that measures the gap between the potential tax and the actual tax. The novelty of this tax effort index is twofold. First it takes into account spatial variables to capture the geographic dependence. Second it breaks down the tax effort analysis into different tax items to capture the possible tax shift. We conclude with a full ranking of tax effort for all countries and some suggestions of tax reform for a subset of countries that are targeted by the Belgian Development Cooperation. |
| Keywords: | Corporate taxation, efficient tax administration, tax enforcement, source-based and destination based taxation, origin and destination principles |
| JEL: | C72 H23 H70 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:7&r=iue |
| By: | George, Justine |
| Abstract: | Improving the linkage between formal and informal manufacturing is a desirable need to develop a complementary relationship to solve the problems like unemployment, low productivity and less capital intensity in the informal sector. |
| Keywords: | Formal, Informal Sector |
| JEL: | O17 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70602&r=iue |
| By: | AfDB AfDB |
| Date: | 2016–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:2327&r=iue |
| By: | Eichhorst, Werner (IZA); Marx, Paul (University of Southern Denmark); Wehner, Caroline (IZA and Maastricht University) |
| Abstract: | Labor market segmentation refers to a salient divide between secure and insecure jobs and is related to problems in important areas, including macro‐economic efficiency, workers' wellbeing and repercussions for social cohesion. European countries have started a new wave of labor market reforms in the aftermath of the 2008/09 crisis to tackle a number of issues, including labor market segmentation. This particularly concerns reforms in: (1) employment protection, i.e. dismissal protection and restrictions on fixed‐term contracts; (2) unemployment benefit generosity and coverage; and (3) the intensity of active labor market policies. The paper provides an overview of reform patterns and tries to assess whether and to what extent these reforms have led to more or less dualized labor markets in terms of dismissal protection, the provision of unemployment benefits and access to ALMPs. In particular, we will provide some evidence on potential changes in hirings on temporary contracts. |
| Keywords: | employment protection, labor market reforms, unemployment insurance, flexicurity |
| JEL: | J42 J48 J68 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9863&r=iue |
| By: | Małgorzata Maciejewska; Adam Mrozowicki |
| Date: | 2016–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:cel:report:13&r=iue |
| By: | Henderson, J Vernon; Regan, Tanner; Venables, Anthony J |
| Abstract: | This paper models a growing city, and focuses on investment decisions and consequent patterns of land use and urban density. We distinguish between formal and informal sector construction. The former can be built tall (at a cost), but structures once built are durable and cannot be modified. Investments are based on expectations about future growth of the city. In contrast, informal structures are malleable and do not involve sunk costs. As the city grows areas will initially be developed informally, and then formally; formal areas are redeveloped periodically. This process can be hindered by land right issues which raise the costs of converting informal to formal sector development. The size and shape of the city are sensitive to the expected returns to durable investments and to the costs of converting informal to formal sector usage. We take the model to data on the built environment for Nairobi, to study urban growth and change between 2004 and 2015 in a context where population is growing at about 4% a year. We study the evolution of building footprints and heights, development at the fringe, infilling, and redevelopment of the formal sector. |
| Keywords: | capital durability; city; housing investment; slum development; urban; urban form; urban growth; urban structure |
| JEL: | O14 O18 R1 R3 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11211&r=iue |
| By: | Enid Rocha Andrade da Silva; Debora Maria Borges de Macedo; Marina Morenna Alves de Figueiredo; Nanah Sanches Vieira; Raissa Menezes de Oliveira |
| Abstract: | Este texto apresenta os resultados da pesquisa qualitativa realizada junto aos membros do Subcomitê do Trabalho Decente para a Juventude em dezembro de 2013. A pesquisa teve como objetivo conhecer percepções e opiniões dos representantes governamentais, dos trabalhadores e dos empregadores a respeito das causas, dificuldades, avanços e desafios relacionados à problemática da informalidade do trabalho dos jovens no Brasil. This paper presents the results of qualitative research conducted with the Decent Work Subcommittee members for Youth in December 2013. The research aimed to know perceptions and opinions of representatives of governments, workers and employers about the causes, difficulties, progress and challenges related to the problem of informal employment of young people in Brazil. |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:2171&r=iue |
| By: | Gómez Sabaini, Juan Carlos; Morán, Dalmiro |
| Abstract: | La evasión tributaria ha sido y continúa siendo uno de los principales obstáculos que afectan a a las finanzas públicas de los países de América Latina. Si bien hasta hace algunos años el enfoque predominante se concentraba en los impuestos aplicados en el ámbito doméstico, la intensificación de las operaciones globales de grandes empresas multinacionales ha obligado a los países a adoptar una mirada más amplia y sofisticada del problema más allá de las fronteras geográficas de los países. Por esas razones, este documento tiene como objetivo fundamental brindar una visión en conjunto del fenómeno de la evasión fiscal desde ambas perspectivas. |
| Keywords: | EVASION TRIBUTARIA, POLITICA FISCAL, MEDICION, MEASUREMENT, TAX EVASION, FISCAL POLICY |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col037:39902&r=iue |
| By: | Camila Pérez; Beatriz Helena Pacheco |
| Abstract: | El estudio analiza el crecimiento reciente de los medios de pago electrónicos en Colombia y cuantifica el potencial que existe para expandir su uso, estimando los beneficios económicos y fiscales que esto traería, a la luz de algunas experiencias internacionales exitosas. El análisis cuantitativo se hace para el sector comercio y muestra que un aumento en la penetración de MPE tiene un impacto positivo sobre el recaudo del IVA y sobre el crecimiento del PIB. |
| Keywords: | Bancarización, Educación Financiera, Inclusión Financiera, Medios de Pago Electrónicos, Reducción de Efectivo, Economía Informal, Evasión Tributaria |
| JEL: | O16 O47 |
| Date: | 2016–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:col:000124:014407&r=iue |