Record Details


Field	Value

Title	VAT Evasion in Bulgaria: A General-Equilibrium Approach

Creator	Vasilev, Aleksandar; AUBG

Subject	Fiscal policy, taxation VAT evasion, general equilibrium, Bulgaria D58, E26, H26, K42

Description	This paper utilizes an otherwise standard micro-founded general-equilibrium setup, which is augmented with a revenue-extraction mechanism to assess the magnitude of VAT evasion. The model is calibrated to Bulgaria after the introduction of the currency board (1999-2014), as one of the very few countries in Europe with a nondifferentiated consumption tax rate, and an economy where VAT revenue makes almost half of total government tax revenue. A computational experiment performed within this setup estimates that on average, the size of evaded VAT is a bit more than onefourth of output, an estimate which is in line with the figures provided in both Philip (2014) and the European Commission (2014). In addition, model-based simulations suggest that increases in spending on law and order could generate substantial welfare gains by decreasing VAT evasion.

Publisher	University of Perugia

Contributor	—

Date	2017-12-21

Type	info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article

Format	application/pdf

Identifier	http://www.rei.unipg.it/rei/article/view/243 10.5202/rei.v8i2.243

Source	Review of Economics and Institutions; Vol 8, No 2 (2017); 17 2038-1379 2038-1344

Language	eng

Relation	http://www.rei.unipg.it/rei/article/view/243/177

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