توسعه مالی
seyed mohamad reza sharifi; ali haghighat; Mehrzad Ebrahimi; abbas aminifard
Abstract
The purpose of this paper is to examine the effect of financial development and tax on the size of the underground economy. The importance of this is because the large size of the underground economy of the three channels has a negative impact on the economy, first the diversion of economic data; second, ...
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The purpose of this paper is to examine the effect of financial development and tax on the size of the underground economy. The importance of this is because the large size of the underground economy of the three channels has a negative impact on the economy, first the diversion of economic data; second, the ineffectiveness and effectiveness of the state's economic policies; and third, because of the possibility of escaping Tax payments and non-compliance with legal requirements in the underground economy are in the interests of national interests, producers and households. Therefore, any policy that leads to a smaller underground economy is key. In this research, a model (TVP-FAVAR) with the aim of investigating the effect of financial development and tax evasion on the underground economy of Iran along with other related variables has been specified. For this purpose, time series data were used in the period 1350 to 1394 and two tools of instantaneous and cumulative response functions. The results of this study indicate that the underground economy's dynamics in response to the financial development shock has been a decreasing trend and increasing terms of tax evasion shock.
s
Mohammad Hassan Fotros; ali dalaei milan
Volume 7, Issue 25 , November 2016, , Pages 65-84
Abstract
Planning for economic development and making a decision for the implementation of economic policies, need to understand the performance of the whole economy, including the official sector and the underground sector. Understanding the performance of the whole economy requires to know economic information ...
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Planning for economic development and making a decision for the implementation of economic policies, need to understand the performance of the whole economy, including the official sector and the underground sector. Understanding the performance of the whole economy requires to know economic information system situation and its efficiency. This study used a DSGE model framework for modelling the underground economy and the effect of oil shock, fiscal impulses (such as changing tax rates) and the shock of productivity on the official economy and underground economy. The results of the evaluation showed that the present model was well able to simulate cyclical behavior and volatility of the variables. The results also showed that a positive impulse to the productivity of official sector caused an increase in official production and a decrease in underground economy and this consequently reduced tax evasion and increased government revenue. On the contrary an impulse to the underground sector productivity of, leaded to a decrease in official production, an increase in underground production and consequently an increase in tax evasion and reducing the government's revenues. Furthermore, a positive shock in the corporate tax rate and income tax rate reduced the official production, increased underground production and tax evasion and decreased government revenue. Positive shock to oil revenues increased official production and reduced underground economy and consequently reduced tax evasion and increased revenue for the government..