The collection efficiency of the Value Added Tax: Theory and international evidence

@article{Aizenman2005TheCE,
  title={The collection efficiency of the Value Added Tax: Theory and international evidence},
  author={Joshua Aizenman and Yothin Jinjarak},
  journal={The Journal of International Trade \& Economic Development},
  year={2005},
  volume={17},
  pages={391 - 410}
}
This paper evaluates the political economy and structural factors explaining the collection efficiency of the Value Added Tax (VAT), where the collection efficiency is determined by the probability of audit and by the penalty on underpaying, and implementation lags imply that the present policy maker determines the efficiency of the tax system next period. Theory suggests that the collection efficiency is affected by political economy considerations – greater polarization and political… 
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