Tax evasion, financial development and inflation : theory and empirical evidence

Show simple item record Bittencourt, Manoel Gupta, Rangan Stander, Lardo 2014-03-31T07:30:58Z 2014-03-31T07:30:58Z 2014-04
dc.description.abstract Using a standard overlapping generations monetary production economy, faced with endogenously determined tax evasion by heterogeneous agents in the economy, we provide a theoretical model that indicates that both a lower (higher) level of financial development and a higher (lower) level of inflation leads to a bigger (smaller) shadow economy. These findings are empirically tested within a panel econometric framework, using data collected for 150 countries over the period 1980–2009 to enable a broad generalisation of the results. The results support the developed theoretical model, even after having accounted for the differences in the levels of economic development, the level of institutional quality that includes different tax regimes and regulatory frameworks, central bank participation in the economy as well as different macroeconomic policies. en_US
dc.description.librarian hb2014 en_US
dc.description.uri en_US
dc.identifier.citation Bittencourt, M Gupta, R & Stander, L 2014, 'Tax evasion, financial development and inflation : theory and empirical evidence', Journal of Banking and Finance, vol. 41, no.1, pp. 194-208. en_US
dc.identifier.issn 0378-4266 (print)
dc.identifier.issn 1872-6372 (online)
dc.identifier.other /10.1016/j.jbankfin.2014.01.009
dc.language.iso en en_US
dc.publisher Elsevier en_US
dc.rights © 2014 Elsevier B.V. All rights reserved. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Journal of Banking & Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Banking & Finance, vol. 41, no.1, pp. 194-298, 2014. doi : 10.1016/j.jbankfin.2014.01.009 en_US
dc.subject Informal economy en_US
dc.subject Financial development en_US
dc.subject Inflation en_US
dc.title Tax evasion, financial development and inflation : theory and empirical evidence en_US
dc.type Postprint Article en_US

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