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Corruption And Firm Tax Evasion, James Alm, Jorge Martinez-Vazquez, Chandler Mcclellan
Corruption And Firm Tax Evasion, James Alm, Jorge Martinez-Vazquez, Chandler Mcclellan
ICEPP Working Papers
Although corruption and tax evasion are distinct and separate problems, they can easily become intertwined and reinforcing. A society that is more corrupt may enable more tax evasion as corrupt officials seek more income via bribes; conversely, higher levels of tax evasion may drive corruption by offering more opportunities for bribes. While a large body of work on each subject separately has emerged, the relationship between the two problems has remained a largely unexplored area. In particular, there is no theoretical work that examines the relationship between corruption and firm tax evasion, focusing on how the potential for bribery of …