Arbeitspapier

Does Tax Evasion Affect Economic Crime?

This paper examines the impact of tax evasion on criminal activities in Italy. Specifically, we consider three types of crime that are related to economic determinants: property crimes (including robbery, theft and car theft), fraud and usury. We estimate a dynamic panel using annual data from the Italian provinces (NUTS-3) for the 2006-2010 period and show that tax evasion positively affects economic crimes. Notably, the elasticity of tax evasion to fraud is related to the size of the tax burden; in addition, these crimes demonstrate different levels of persistence over time, reflecting different adjustment costs. Finally, we find that property crimes, fraud and usury are not influenced by deterrence or clearing-up variables.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 6957

Classification
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Tax Evasion and Avoidance
Illegal Behavior and the Enforcement of Law
Subject
property crime
usury
fraud
tax evasion
deterrence effect

Event
Geistige Schöpfung
(who)
Argentiero, Amedeo
Chiarini, Bruno
Marzano, Elisabetta
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2018

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Argentiero, Amedeo
  • Chiarini, Bruno
  • Marzano, Elisabetta
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2018

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