Unlocking the gates of paradise: General equilibrium effects of information exchange
| Autor: | Olivier Pierrard, Luca Marchiori |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
Control and Optimization Inequality General equilibrium theory Applied Mathematics media_common.quotation_subject 05 social sciences ComputingMilieux_LEGALASPECTSOFCOMPUTING Monetary economics Exchange of information 0502 economics and business Government revenue Economics Revenue 050207 economics Welfare Bank secrecy Information exchange 050205 econometrics media_common |
| Zdroj: | Journal of Economic Dynamics and Control. 87:152-172 |
| ISSN: | 0165-1889 |
| DOI: | 10.1016/j.jedc.2017.12.006 |
| Popis: | In a move to reduce bank secrecy and fight international tax evasion, about 100 tax jurisdictions have so far committed to implement a new standard on the Automatic Exchange of Information (AEoI). This paper examines the quantitative consequences of the AEoI for an onshore country, using a neoclassical model with an offshore financial center. Our main findings are (i) the AEoI increases government revenues but reduces welfare; (ii) welfare improves when using the AEoI revenues to reduce tax pressure or when including household wealth inequality; (iii) government revenues increase further when accounting for a disclosure penalty cost. These results depend on the general equilibrium effects, absent from earlier papers on offshore financial centers. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect