Dynamic Tax Evasion with Habit Formation in Consumption*

Bernasconi, Michele; Levaggi, Rosella; Menoncin, Francesco

doi:10.1111/sjoe.12365

Cited by 13 publications

(6 citation statements)

References 58 publications

(82 reference statements)

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“…We assume that α and λ 1 are the same across countries because of their homogeneity in terms of geographical location and economic development. Finally, the discount rate ρ is assumed to be 0.03, whereas the risk aversion is assumed to be 2.5 (Tsur and Zemel, 2017;Bernasconi et al, 2020).…”

Section: A Model With Subsistence Consumptionmentioning

confidence: 99%

The Day After Tomorrow: Mitigation and Adaptation Policies to Deal with Uncertainty

2021

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The catastrophic events are characterized by "low frequency and high severity". Nevertheless, during the last decades, both the frequency and the magnitude of these events have been significantly rising worldwide. In 2021, the European Commission adopted a new Strategy on Adaptation to Climate Change aiming to reinforce the adaptive capacity and minimize vulnerability to the effects of climate change and natural catastrophes. In a continuous time framework over an infinite horizon, we solve in closed form the problem of a representative consumer who holds a production technology (firm) and who optimises with respect to both the intertemporal consumption and the mix between an insurance (adaptation) against the magnitude of the catastrophic losses, and an effort strategy (mitigation) aimed at reducing the frequency of such losses. The catastrophic events are modelled as a Poisson jump process. We then propose some numerical simulations calibrated to the country-specific data of the five main European economies (Germany, France, Italy, Spain, and Netherlands). Our model demonstrates that an optimal mix of mitigation/effort strategies allows to reduce the volatility of the economic growth rate, even if its level may be lowered due to the effort costs. Simulations allow us to also conclude that different countries must optimally react differently to catastrophes, which means that a one-for-all policy does not seem to be optimal.

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Section: A Model With Subsistence Consumptionmentioning

confidence: 99%

The Day After Tomorrow: Mitigation and Adaptation Policies to Deal with Uncertainty

2021

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“…It is also possible to extend the de…nition of reference consumption to re ‡ect features other than social comparison. Incorporating an additional concern for previous own consumption, for instance, introduces habit e¤ects into the model (see, e.g., Bernasconi et al, 2016). This too is achieved without altering the Bonacich centrality interpretation of the equilibrium.…”

Section: Nash Equilibriummentioning

confidence: 99%

Tax Evasion on a Social Network

degl’Innocenti

Rablen

2018

SSRN Journal

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“…The TIN strategy was adopted over other strategies because it was determined to have the greatest chance of success. This was because it made access to basic services by businesses completely dependent on the possession of TIN which allowed the government to know whether or not a business This study adopts a qualitative approach by interviewing tax officials to understand their perspective regarding the efficacy of TIN in combating tax evasion in the state; this approach makes this study different from typical tax evasion studies that rely on secondary data to determine the efficacy of tax evasion policies like TIN (e.g., Ahrens & Bothner, 2019;Bethencourt & Kunze, 2019;Casais et al, 2019;Agarwal et al, 2020;Bernasconi et al, 2020 .…”

Section: Introductionmentioning

confidence: 99%

Curbing Tax Evasion through Taxpayer Identification Number (TIN) in Niger State, Nigeria

Abdul

Zubairu

Abubakar

2021

Sriwijaya Int. J. of Dynamic Eco. And Buss.

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This study assessed the effectiveness of the introduction of Taxpayer Identification Number (TIN) in curbing tax evasion in Niger State, Nigeria from the point of view of ten tax officers of the Niger State Internal Revenue Service. Adopting a qualitative research design, ten tax officers were interviewed to understand their collective perceptions of the level of tax evasion in Niger State before and after the introduction of TIN. Thematic analyses of the interviews revealed that all ten tax officials agreed that tax evasion was at a very high level before the introduction of TIN, but reduced dramatically after the introduction of TIN proving its efficacy. The study recommended that tax evasion in the State could be further reduced if businesses operating in the informal sector could be registered and included in the database of taxable entities.

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Dynamic Tax Evasion with Habit Formation in Consumption*

Cited by 13 publications

References 58 publications

The Day After Tomorrow: Mitigation and Adaptation Policies to Deal with Uncertainty

The Day After Tomorrow: Mitigation and Adaptation Policies to Deal with Uncertainty

Tax Evasion on a Social Network

Curbing Tax Evasion through Taxpayer Identification Number (TIN) in Niger State, Nigeria

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