Size and Development of Tax Evasion in 38 OECD Countries: What Do We (Not) Know?

22 Pages Posted: 27 Nov 2012

See all articles by Andreas Buehn

Andreas Buehn

University of Cooperative Education Bautzen

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Date Written: November 27, 2012

Abstract

For the first time we develop a time series of tax evasion (in % of official GDP) for 38 OECD countries over the period 1999 to 2010 based on MIMIC model estimations of the shadow economy. Considering indirect taxation and self-employment as the driving forces of tax evasion, we observe a declining trend of tax evasion between 1999 and 2010 for all countries. The average size of tax evasion across all 38 countries over the period 1999 to 2010 is 3.2% of official GDP. The country with the highest average value is Mexico with 6.8%, followed by Turkey with 6.7%; at the lower end we find the United States and Luxembourg with 0.5% and 1.3%, respectively.

JEL Classification: K420, H260, D780, O170, O500, H110

Suggested Citation

Buehn, Andreas and Schneider, Friedrich G., Size and Development of Tax Evasion in 38 OECD Countries: What Do We (Not) Know? (November 27, 2012). CESifo Working Paper Series No. 4004, Available at SSRN: https://ssrn.com/abstract=2181359

Andreas Buehn

University of Cooperative Education Bautzen ( email )

Loebauer Strasse 1
Bautzen, 02625
Germany

Friedrich G. Schneider (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8210 (Phone)
+43 732 2468 8208 (Fax)

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