Author/Editor:
Publication Date:
January 20, 2017
Electronic Access:
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Summary:
This paper sets out a framework for analyzing optimal interventions by a tax administration, one that parallels and can be closely integrated with established frameworks for thinking about optimal tax policy. Its key contribution is the development of a summary measure of the impact of administrative interventions-the 'enforcement elasticity of tax revenue'-that is a sufficient statistic for the behavioral response to such interventions, much as the elasticity of taxable income serves as a sufficient statistic for the response to tax rates. Amongst the applications are characterizations of the optimal balance between policy and administrative measures, and of the optimal compliance gap.
IMF - International Monetary Fund published this content on 20 January 2017 and is solely responsible for the information contained herein.
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Original documenthttp://www.imf.org/en/Publications/WP/Issues/2017/01/20/Optimal-Tax-Administration-44555
Public permalinkhttp://www.publicnow.com/view/88BB5A0421FF4399389B869701082A9196C75AF4
