Tax evasion,tax corruption and stochastic growth
Fred Celimene (),
Gilles Dufrénot (),
Gisele Mophou () and
Gaston N'Guerekata
Additional contact information
Fred Celimene: CEREGMIA, Université des Antilles et de la Guyane
Gisele Mophou: CEREGMIA, Université des Antilles et de la Guyane
Gaston N'Guerekata: Morgan State University, Baltimore, MD, USA
No 2013-05, Documents de Travail from CEREGMIA, Université des Antilles et de la Guyane
Abstract:
This paper presents a continuous time stochastic growth model to study the effects of tax evasion and tax corruption on the level and volatility of private investment and public spending. Our results suggest that there do exist several regimes of mean growth and growth volatility, depending upon the consumer's degree of risk aversion, the tax income yield, the risk-adjusted return of the agent's portfolio, the productivity of public spending. We find that public spending is described asymptotically by an incomplete upper Gamma distribution, while private capital is described by a power law distribution. Depending upon the values of the parameters of these distributions, growth can be characterized by extreme values (high volatility) when the return to taxation lies under a certain threshold and/or when the risk-adjusted return of investing the proceeds of illegal activities evolves above a given threshold. We provide an empirical illustration of the model.
Pages: 38 pages
Date: 2013-02
New Economics Papers: this item is included in nep-fdg, nep-iue, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://www2.univ-ag.fr/RePEc/DT/DT2013-05_Celimene_al.pdf First version, 2013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
Related works:
Journal Article: Tax evasion, tax corruption and stochastic growth (2016)
Working Paper: Tax evasion, tax corruption and stochastic growth (2016)
Working Paper: Tax evasion, tax corruption and stochastic growth (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:crg:wpaper:dt2013-05
Access Statistics for this paper
More papers in Documents de Travail from CEREGMIA, Université des Antilles et de la Guyane Contact information at EDIRC.
Bibliographic data for series maintained by Janis Hilaricus ().