1996 Reports

Corruption, Black Markets, and the Fiscal Problem in LDC's: Some Recent Findings

McLaren, John

The fiscal difficulties of LDC's, and the important role for evasion as a part of them, are well-known. Drawing on the rich literature on tax evasion in the public finance literature, much recent research has shed light on two phenomena contributing to this problem: Fiscal corruption and evasion through illegal transactions. This note surveys some of this recent research.