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

Describe how your  firm creates value, Describe how your  firm creates valu...

Describe how your  firm creates value: Q: a. Dividends are tangible. Unrecognized capital gain is paper money. So, Dividends are always preferable to no payouts by the firm. Di

Investment value and rate, The second task of the program is to calculate...

The second task of the program is to calculate/display a possible investment. First, the program should ask the amount of money that he/she requires (on an average) per week a

Tax return problem-federal and state income taxes , Problem Facts. Larry K....

Problem Facts. Larry K. and Cathy L. Zepp have been married 19 years. Larry is 62 years old (Social Security number 123-45-6789) while Cathy is 57 years old (Social Security number

Tax file, Carol is a successful physician who owns 100% of her incorporated...

Carol is a successful physician who owns 100% of her incorporated medical practice. She and her husband, Jared, are considering the purchase of a commercial office building located

Deductible amount for AGI, Clem paid self-employment tax of $14,200 and Wan...

Clem paid self-employment tax of $14,200 and Wanda had $3,000 of Social Security taxes withheld from her pay. Determine deductible amount for AGI

Role of media play in marketing mix, Role of media play in marketing mix: ...

Role of media play in marketing mix: A. The article discusses the market prospects for automotive technology for producing driverless cars with the potential to reduce road ac

Characteristics of a common resource, Suppose there are 40 commuters in App...

Suppose there are 40 commuters in Apple Valley, Minnesota who commute to downtown Minneapolis. They have two options for getting downtown: they can take the light rail or they can

Advanced tax, The Madison Restaurant was formed a S corporation at the end ...

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40%

Determine method of money transfer, Ted Testator died January 1st of this y...

Ted Testator died January 1st of this year.  Ted was married to Teri at the time of his death, but has two children, Timothy and Tabitha, from a prior marriage. You have been hired

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