Draw a scatter plot with the share of the economy, Taxation

Assignment Help:

1.  The NGO called Transparency International (TI) publishes a "Corruption Perceptions Index" (CPI) that ranks countries on a scale of 0 to 10 based on how corrupt their public sector is perceived to be. A score of 0 means highly corrupt, while 10 means very clean. Go to the TI website and find the CPI score of Canada, the U.S., Germany, France, Sweden, Russia, Kazakhstan, Spain, Italy, Greece, Switzerland, Afghanistan, Nigeria, Botswana, South Africa, and any five other countries of your choice (which should give you 20 countries in all). Next, go to the paper by Schneider (2006) that I have posted on Blackboard and refer to table 6.5 which gives the size of the "shadow economy" as a proportion of GDP for year 2002/03 (last column) for more than 100 countries. The shadow economy is that portion of the economy that is unofficial and hence escapes taxation. Use the table to record the size of the shadow economy as a proportion of GDP for each of the 20 countries selected above. Now:
 
a.  Use a spreadsheet program or graph paper to generate a scatter plot with the share of the shadow economy on the vertical axis and the corruption index on the horizontal axis.

b.  Based on your scatter plot, discuss whether or not your (admittedly small sample of countries used in this exercise) supports the view that a high level of public sector corruption will contribute to tax evasion via a large shadow economy. 

c.  Explain how the perception of public sector corruption relates to the "psychological tax contract" concept in the reading by Lars Feld and Bruno Frey.


Related Discussions:- Draw a scatter plot with the share of the economy

Collective investment fund, A fund that is managed by a trust company or a ...

A fund that is managed by a trust company or a bank and deals with pooled collection of trust accounts. Collective investment funds combine together the assets of several individua

Computation, "Alfred E. Old and Beulah A. Crane, each age 42, married on Se...

"Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2010. Alfred and Beulah will file a joint return for 2011. Alfred''''s Social Security number is 111-11-111

Tax return.., need help with tax return assignment

need help with tax return assignment

Corporation taxation, A and B are unrelated individuals. A forms Newco Inc....

A and B are unrelated individuals. A forms Newco Inc. on January 2 of the current year by transferring property with a basis of $10,000 and a value of $50,000 for all 50 shares of

Importance of creating a surplus budget, a) Using the above information you...

a) Using the above information you are to construct Fiona's Cash Flow Statement and then explain to her the importance of creating a surplus budget. b) The Net Worth Statement e

Describe what is the incidence of tax, Tax incidence can be separated into-...

Tax incidence can be separated into- 1. Formal incidence: the party liable to the tax 2. Informal incidence: party, who really pays the tax The tax incidence is decided by t

Justify the present budget deficit, Question 1: i) What is a public goo...

Question 1: i) What is a public good? Discuss how the free rider problem might be a problem in the provision of a public good. ii) What do we mean by ‘‘market failure''? Exp

Sales tax, I got confused with the numbers on these parts: 1. "The $3,600 o...

I got confused with the numbers on these parts: 1. "The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd