Arbeitspapier
Relative consumption and tax evasion
Relative consumption effects or status concerns that feature jealousy (in the sense of Dupor and Liu, AER 2003) boost consumption expenditure. If consumption is financed by labour income, such status considerations increase labour supply and, hence, the tax base. A higher taxable income, in turn, can make tax evasion more attractive. We show for various specifications of preferences that the tax base effect generally dominates. Consequently, relative consumption effects tend to reduce tax evasion. This is true, irrespective of whether tax parameters are exogenous, guarantee a balanced budget or are set optimally.
- Language
-
Englisch
- Bibliographic citation
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Series: IAAEU Discussion Paper Series in Economics ; No. 01/2013
- Classification
-
Wirtschaft
Externalities
Taxation and Subsidies: Efficiency; Optimal Taxation
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Tax Evasion and Avoidance
- Subject
-
Income taxes
Optimal taxation
Relative consumption
Tax evasion
Einkommensteuer
Optimale Besteuerung
Konsuminterdependenz
Steuerflucht
Sozialer Status
Arbeitsangebot
Theorie
- Event
-
Geistige Schöpfung
- (who)
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Goerke, Laszlo
- Event
-
Veröffentlichung
- (who)
-
University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
- (where)
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Trier
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Goerke, Laszlo
- University of Trier, Institute for Labour Law and Industrial Relations in the European Union (IAAEU)
Time of origin
- 2013
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Tax Progressivity and Tax Evasion
Tax evasion by firms
Tax evasion by individuals
Tax overpayments, tax evasion, and book-tax differences
Income tax buyouts and income tax evasion
Income Tax Buyouts and Income Tax Evasion
Tax Evasion in a Unionised Economy
Human capital formation and tax evasion
Bureaucratic corruption and profit tax evasion
Tax evasion in a Cournot oligopoly with endogenous entry
Relative consumption and tax evasion
Profit Sharing and Relative Consumption
Tax Progressivity and Tax Evasion
Tax evasion by firms
Tax evasion by individuals
Tax overpayments, tax evasion, and book-tax differences
Income tax buyouts and income tax evasion
Income Tax Buyouts and Income Tax Evasion
Tax Evasion in a Unionised Economy
Human capital formation and tax evasion
Bureaucratic corruption and profit tax evasion