Dr. David Agrawal recognized by the American Economic Association for tax research

Dr. Agrawal's recent article, The Internet as a Tax Haven?, was selected as having "the chart of the week" by the American Economic Association.

"In a paper in the American Economic Journal: Economic Policy, author David R. Agrawal shows that tax remittance rules in the internet age can have a significant impact on the commodity rates of local municipalities." The chart, pictured below, "shows the effect of a one standard deviation increase in internet penetration (y-axis) for each municipal population decile (x-axis) in states with local sales taxes...Agrawal's work offers clear evidence that switching to a remitting party that can be more easily monitored reduces tax evasion and has implications for the optimal tax rates set by governments."

 

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