Tax evasion and financial repression : a reconsideration using endogenous growth models

dc.contributor.authorZiramba, Emmanuel
dc.contributor.emailRangan.Gupta@up.ac.zaen_US
dc.contributor.upauthorGupta, Rangan
dc.date.accessioned2008-09-30T08:34:12Z
dc.date.available2008-09-30T08:34:12Z
dc.date.issued2008-05
dc.description.abstractUsing two dynamic monetary general equilibrium models characterized by endogenous growth, financial repression and endogenously determined tax evasion, we analyze whether financial repression can be explained by tax evasion. When calibrated to four Southern European economies, we show that higher degrees of tax evasion within a country, resulting from a higher level of corruption and a lower penalty rate, yields higher degrees of financial repression as a social optimum. However, a higher degree of tax evasion, due to a lower tax rate, reduces the severity of the financial restriction. In addition, we find the results to be robust across growth models with or without productive public expenditures. The only difference being that the policy parameters in the former case have higher optimal values.en_US
dc.identifier.citationGupta, R & Ziramba, E 2008, 'Tax evasion and financial repression: a reconsideration using endogenous growth models', University of Pretoria, Department of Economics, Working paper series, no. 81. [http://web.up.ac.za/default.asp?ipkCategoryID=736&sub=1&parentid=677&subid=729&ipklookid=3]en_US
dc.identifier.urihttp://hdl.handle.net/2263/7423
dc.language.isoenen_US
dc.publisherUniversity of Pretoria, Department of Economicsen_US
dc.relation.ispartofseriesWorking Paper (University of Pretoria, Department of Economics)en_US
dc.relation.ispartofseries81en_US
dc.relation.ispartofseriesWorking Paper (University of Pretoria, Department of Economics)en_US
dc.relation.ispartofseries2008-08en_US
dc.rightsUniversity of Pretoria, Department of Economicsen_US
dc.subjectUnderground economyen_US
dc.subjectTax evasionen_US
dc.subjectMacroeconomic policyen_US
dc.subject.lcshTax evasionen
dc.titleTax evasion and financial repression : a reconsideration using endogenous growth modelsen_US
dc.typeWorking Paperen_US

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