nep-pub New Economics Papers
on Public Finance
Issue of 2005‒05‒29
two papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Timing Tax Evasion By Dirk Niepelt
  2. 05-03 "Securing Social Security: Sensitivity to Economic Assumptions and Analysis of Policy Options" By Brian Roach and Frank Ackerman

  1. By: Dirk Niepelt (Study Center Gerzensee)
    Abstract: Standard models of tax evasion implicitly assume that evasion is either fully detected, or not detected at all. Empirically, this is not the case, casting into doubt the traditional rationales for interior evasion choices. I propose two alternative, dynamic explanations for interior tax evasion rates: Fines depending on the duration of an evasion spell, and different vintages of income sources subject to aggregate risk and fixed costs when switched between evasion states. The dynamic approach yields a transparent representation of revenue losses and social costs due to tax evasion, novel findings on the effect of policy on tax evasion, and a tractable framework for the analysis of tax evasion dynamics.
    Date: 2004–11
  2. By: Brian Roach and Frank Ackerman
    Abstract: Revamping the Social Security program has become a domestic policy priority of the Bush administration. The President has stated that the system is facing a “crisis” and will be “bankrupt” in 2041. His proposal to change Social Security is centered on the introduction of private accounts that would allow workers to direct a share of their Social Security taxes into investments such as stocks and bonds. In this paper we consider whether Social Security is really facing a crisis and whether any potential future shortfalls could be remedied without changing the basic structure of the existing program.

This nep-pub issue is ©2005 by Kwang Soo Cheong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.