Corruption , extortion and evasion
نویسندگان
چکیده
Corruption, evasion and the abuse of power — and the possibility thereof — are pervasive features of economic activity. A prominent instance is tax collection. This paper examines the implications of corruptibility and the potential abuse of authority for the effects and optimal design of (potentially non-linear) tax collection schemes. Amongst the findings are that: the distributional effects of evasion and corruption are unambiguously regressive under the kinds of schemes usual in practice; and collecting progressive taxes without inducing evasion or corruption may require that inspectors be paid commission on high income reports (but not on low), with the cost of this potentially creating what seems to be a previously-unnoticed trade-off between equity and efficiency. 1999 Elsevier Science S.A. All rights reserved.
منابع مشابه
Corruption Begets Corruption In Developing Countries - How The Use Of Technology Could Change The Landscape
This paper investigates the role technology can play in fostering good business practices that would deter economic corruption and extortion in developing countries. This paper first provides a problem statement with a brief description of corruption in form of bribery and extortion based on Foreign Corrupt Practices Act (FCPA) and its provisions. Second, we propose a definition of bribery and ...
متن کاملIssn 1045-6333 Corruption and Optimal Law Enforcement
We analyze corruption in law enforcement: the payment of bribes to enforcement agents, threats to frame innocent individuals in order to extort money from them, and the actual framing of innocent individuals. Bribery, extortion, and framing reduce deterrence and are thus worth discouraging. Optimal penalties for bribery and framing are maximal, but, surprisingly, extortion should not be sanctio...
متن کاملCorruption and optimal law enforcement
We analyze corruption in law enforcement: the payment of bribes to enforcement agents, threats to frame innocent individuals in order to extort money from them, and the actual framing of innocent individuals. Bribery, extortion, and framing reduce deterrence and are thus worth discouraging. Optimal penalties for bribery and framing are maximal, but, surprisingly, extortion should not be sanctio...
متن کاملPetty Corruption and Citizen Reports
This paper argues that self-reporting schemes whereby citizens report their noncompliance with regulation can prevent corruption in administrations. In our model, entrepreneurs must comply with regulation before undertaking a risky activity. O cials verify compliance before granting permits, and may engage in either bribery or extortion. Without a self-reporting scheme, the government tolerates...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 1999