Tax Evasion and the Size of Decentralization: Evidence from Italy

Antonio Acconcia (Federico II)
Marcello D'Amato (Suor Orsola Benincasa)
Riccardo Martina (Federico II)
Carla Ronza (Federico II)

Abstract

Building on Acconcia et al. (2022), this project aims at a further investigation of the spatial
distribution of tax evasion in Italy. By relying on the natural experiment of Italian unification and the change of province borders over time, we provide evidence consistent with the idea that
increasing decentralization of tax enforcement fuels tax evasion.

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