 Estimation of the size of tax evasion in GreeceAthanasios Anastasiou, Kalamara Eleni and Kalligosfyris Charalampos Bulletin of Applied Economics, 2020, vol. 7, issue 2, 97-107 Abstract: The purpose of this paper is to estimate the extent of tax evasion in Greece for the period 1980-2018. For this estimation we have chosen to apply an indirect method of approach to the issue, as developed by Tanzi, based on the assumption that estimating the size of the shadow economy can lead us to a safe measurement of the extent of tax evasion. More precisely, through the Currency Demand approach which is based on the basic assumption that activities under the shadow economy constitute a direct response of taxpayers to the increased tax burden and also that cash is mainly used to conduct such transactions and of the wealth derived from them, the size of the shadow economy was determined using the method of the University of Leicester research team and then the level of tax evasion was assessed by imposing an annual tax rate on it as a ratio of total tax revenue to Gross Domestic Product. The results showed a significant increase of the size of tax evasion during the period considered, while the model estimation showed that most of the tax evasion came from direct taxation. Keywords: Macroeconomics; public economics; applied economics; tax evasion; Greece (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rmk:rmkbae:v:7:y:2020:i:2:p:97-107 Access Statistics for this article Bulletin of Applied Economics is currently edited by Eleftherios Spyromitros More articles in Bulletin of Applied Economics from Risk Market Journals |
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