%0 Journal Article %T The tax evasion social multiplier: Evidence from Italy %+ Université Paris Nanterre (UPN) %A Galbiati, Roberto %A Zanella, Giulio %< avec comité de lecture %Z 2441/9labe9r4se65i789685rhgco9 %@ 0047-2727 %J Journal of Public Economics %I Elsevier %8 2012-06 %D 2012 %R 10.1016/j.jpubeco.2012.01.003 %K Social interactions %K Neighborhood effects %K Social multiplier %K Tax evasion %K Tax compliance %K Excess variance %Z Humanities and Social Sciences/Sociology %Z Humanities and Social Sciences/Economics and FinanceJournal articles %X We estimate social externalities of tax evasion in a model where congestion of the auditing resources of local tax authorities generates a social multiplier. Identification is based on a contrast of the variance of tax evasion at different levels of aggregation. We use a unique data set that contains audits of about 80,000 small businesses and professionals in Italy and also provides an exact measure of reference groups in our model. We find a social multiplier of about 3, which means that the equilibrium response to a shock that induces an exogenous variation in mean concealed income is about 3 times the initial average response. This is a short-run effect that persists to the extent that auditing resources are not adjusted to internalize the congestion externality. %G English %2 https://sciencespo.hal.science/hal-03574131/document %2 https://sciencespo.hal.science/hal-03574131/file/2012-galbiati-the-tax-evasion-social-multiplier.pdf %L hal-03574131 %U https://sciencespo.hal.science/hal-03574131 %~ SHS %~ SCIENCESPO %~ UNIV-PARIS10 %~ AO-ECONOMIE %~ AO-SOCIOLOGIE %~ SOCIOLOGIE %~ UNIV-PARIS-LUMIERES %~ UNIV-PARIS-NANTERRE