Jellal, Mohamed (2009): Bureaucracy and Corruption Taxation Proof.
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Using the Principal-Agent-Supervisor paradigm, we examine in this paper how a tax collection agency changes optimal schemes in order to lessen the occurrence of bribery between the tax collector and the taxpayer. The Principal, who maximizes the expected net fiscal revenue, reacts by decreasing tax rates when the supervisor is likely to engage in corrupt transaction with taxpayer. The combat against collusion may explain the greater reliance on indirect taxes than on direct taxes both in developed and developing countries
|Item Type:||MPRA Paper|
|Original Title:||Bureaucracy and Corruption Taxation Proof|
|Keywords:||Principal Agent Supervisor;Bureaucracy ;Collusion; Tax evasion|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion
|Depositing User:||Mohamed Jellal|
|Date Deposited:||08. Sep 2009 13:44|
|Last Modified:||20. Feb 2013 07:09|
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