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dc.contributor.authorGorodnichenko, Yuriyen_US
dc.contributor.authorMartinez-Vazquez, Jorgeen_US
dc.contributor.authorSabirianova Peter, Klaraen_US
dc.date.accessioned2008-06-27en_US
dc.date.accessioned2010-07-07T11:31:11Z-
dc.date.available2010-07-07T11:31:11Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/34974-
dc.description.abstractUsing micro-level data, we examine the effects of Russia's 2001 flat rate income tax reform on consumption, income, and tax evasion. We use the gap between household expenditures and reported earnings as a proxy for tax evasion with data from a household panel for 1998-2004. Utilizing difference-in-difference and regression-discontinuity-type approaches, we find that large and significant changes in tax evasion following the flat tax reform are associated with changes in voluntary compliance and cannot be explained by changes in tax enforcement policies. We also find the productivity response of taxpayers to the flat tax reform is small relative to the tax evasion response. Finally, we develop a feasible framework to assess the deadweight loss from personal income tax in the presence of tax evasion based on the consumption response to tax changes. We show that because of the strong tax evasion response the efficiency gain from the Russian flat tax reform is at least 30% smaller than the gain implied by conventional approaches.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3267en_US
dc.subject.jelD73en_US
dc.subject.ddc330en_US
dc.subject.keywordTax evasionen_US
dc.subject.keywordconsumption-income gapen_US
dc.subject.keywordpersonal income taxen_US
dc.subject.keywordflat taxen_US
dc.subject.keyworddifference-indifferenceen_US
dc.subject.keywordregression discontinuityen_US
dc.subject.keyworddeadweight lossen_US
dc.subject.keywordtransitionen_US
dc.subject.keywordRussiaen_US
dc.subject.stwEinkommensteueren_US
dc.subject.stwKopfsteueren_US
dc.subject.stwSteuerreformen_US
dc.subject.stwKonsumen_US
dc.subject.stwEinkommenen_US
dc.subject.stwSteuerfluchten_US
dc.subject.stwRusslanden_US
dc.titleMyth and reality of flat tax reform: micro estimates of tax evasion response and welfare effects in Russiaen_US
dc.typeWorking Paperen_US
dc.identifier.ppn559866518en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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