Template-Type: ReDIF-Paper 1.0
Title: Identifying Tax Compliance from Changes in Enforcement: Theory and Empirics
Author-Name: Andrew Bibler
Author-Email: andrew.bibler@unlv.edu
Author-Name: Laura Grigolon
Author-Email: lgrigolo@mail.uni-mannheim.de
Author-Name: Keith F. Teltser
Author-Email: kteltser@gsu.edu
Author-Name: Mark J. Tremblay
Author-Email: mark.tremblay@unlv.edu
Classification-JEL: H20, H22, H26, L10
Keywords: tax evasion, compliance, statutory incidence, tax invariance, Airbnb, sharing
economy, voluntary collection agreements

Abstract: Governments increasingly use changes in tax rules to combat evasion. We develop
a general approach to point-identify tax compliance along with supply and demand
elasticities; identification requires data on prices and quantities before and after changes
in tax enforcement and a demand or supply shifter. We illustrate our approach using
data on Airbnb collection agreements, where full enforcement is achieved by shifting
the tax burden away from hosts to renters via the platform. We find that taxes are
paid on roughly zero to 3.5 percent of Airbnb transactions prior to enforcement.


Note: 
Length: 35
Creation-Date: 2024-02
Revision-Date:
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp505
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2024_505