The Evolution of Tax Evasion in the Czech Republic: A Markov Chain Analysis

Jan Hanousek and Filip Palda

Public Economics from University Library of Munich, Germany

Abstract: We use a dataset of 1062 individuals from the Czech Republic to forecast the evolution of tax evasion in that country. We ask each respondent how intensely (never, sometimes, often) he evaded taxes in 1995, 1999, and 2000, to calculate probabilities the average individual will move between these categories of evasion in any given year. These "trasition" probabilities allow us to predict a rising tide of tax evasion in the next decade. We estimate the reduced form parameters which determine evasion and suggest how government might influence these parameters to prevent the Czech Republic from bogging down in a permanent mire of tax evasion. (JEL Codes : H26, H43, K42, O17)

Keywords: Tax evasion; transition economies; dynamic modelling; Czech Republic (search for similar items in EconPapers)
JEL-codes: H26 H43 K42 O17 (search for similar items in EconPapers)
Date: 2002-05-09
New Economics Papers: this item is included in nep-law, nep-pbe and nep-pub
Note: Type of Document - pdf; prepared on IBM-PC; to print on Any ;
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0205/0205002.pdf (application/pdf)

Related works:
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:wpa:wuwppe:0205002

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).