Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
ABSTRACT This paper provides an empirical analysis of fiscal illusion by estimating an index of fiscal illusion for 28 European countries over the period 1995–2008 employing a structural equation approach. Using Multiple Indicators... more
ABSTRACT This paper provides an empirical analysis of fiscal illusion by estimating an index of fiscal illusion for 28 European countries over the period 1995–2008 employing a structural equation approach. Using Multiple Indicators Multiple Causes models, the paper investigates the main indicators of fiscal illusion and develops an index of fiscal illusion. It concludes that the chief determinants for the deployment of fiscal illusion strategies are the share of self-employment on total employment, the educational level of citizens, and the size of tax burden. At the same time, policy makers attempt to ‘conceal’ the real tax burden by means of debt illusion, fiscal drag, wage withholding taxes, as well as taxes on labour.
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Research Interests: Political Science, Human Development, Informal Economy, Applied Economics, Latin America, and 8 moreConstitutional Political Economy, Latin American, Human development index, Regional Security in Latin American Countries, Unemployment and Crime Rate, Empirical evidence, Panel regression, and Unemployment rate
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This article aims to estimate the size of the US shadow economy (SE) using a structural equation approach and to evaluate if a structural relationship exists between the SE and the unemployment rate (UR) in the United States. The size of... more
This article aims to estimate the size of the US shadow economy (SE) using a structural equation approach and to evaluate if a structural relationship exists between the SE and the unemployment rate (UR) in the United States. The size of the SE is estimated to be decreasing over the ...
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Research Interests:
ABSTRACT This article estimates the magnitude of fiscal illusion around the world and evaluates whether relationships exist between fiscal illusion and a set of potential observed variables. The index of fiscal illusion is derived for... more
ABSTRACT This article estimates the magnitude of fiscal illusion around the world and evaluates whether relationships exist between fiscal illusion and a set of potential observed variables. The index of fiscal illusion is derived for approximately fifty countries over the period 2000–08. Using MIMIC models, the authors conclude that the structure of employment (self-employment as a percentage of total employment) and nominal marginal tax rates, by increasing the visibility of the tax burden, may constitute the greatest incentives for policy makers to distort taxpayers' perceptions. Less relevant are the determinants of fiscal illusion related to the information acquisition and processing capabilities of the taxpayer (i.e., freedom of the press and tertiary education).