The tax-price elasticity of offshore tax avoidance: Evidence from Ecuadorian transaction data

Jakob Brounstein

No wp-2021-187, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This study leverages a unique data set on the universe of transactions exiting the Ecuadorian economy to estimate the tax-price elasticity of demand for tax-sheltering activities using offshore fiscal havens. I determine this elasticity quasi-experimentally by comparing the evolution in funds sent by individuals and corporations to tax havens for different purposes (e.g. dividend payments, bank account deposits) versus similar transactions with non-tax havens around changes to the Ecuadorian Impuesto a la Salida de Divisas , which effectuated an ad valorem tax on transfers to tax havens.

Keywords: Tax evasion; Tax avoidance; Tax havens (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-iue and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2021-187

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