|
|
|
|
||||
|
||||
Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 CountriesEric FriedmanCornell University - Operations Research & Industrial Engineering Simon JohnsonMassachusetts Institute of Technology (MIT) - Entrepreneurship Center; National Bureau of Economic Research (NBER) Daniel KaufmannThe Brookings Institution Pablo ZoidoStanford University - Graduate School of Business August 1999 Conference Paper, The Nobel Symposium in Economics - The Economics of Transition, Stockholm, September 1999 Abstract: Across 69 countries, higher tax rates are associated with less unofficial activity as a percent of GDP but corruption is associated with more unofficial activity. Entrepreneurs go underground not to avoid official taxes but to reduce the burden of bureaucracy and corruption. Dodging the Grabbing Hand in this way reduces tax revenues as a percent of both official and total GDP. As a result, corrupt governments become small governments and only relatively uncorrupt governments can sustain high tax rates.
Number of Pages in PDF File: 47 JEL Classification: H26,K42,O17,O1,O17,P5,M5,K0,H0,H1,C42 working papers seriesDate posted: November 17, 1999Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo3 in 0.375 seconds
