Understanding tax non-compliance and the effect of different enforcement strategies is relevant for improving the efficiency and efficacy of tax policy. Using administrative data provided by Chile’s tax authority we analyze the dynamic effects of real-world tax audits for the universe of...

State governments finance their expenditures with multiple tax instruments, so when collections from one source decline, they are typically compensated by greater revenues from other sources. This paper addresses the important question of the extent to which personal and corporate income taxes...