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We model the behaviour of a mortgagor considering to evade the real estate transfer tax. We build an observable measure of over-appraisal that is inversely related with tax evasion and conclude that the tax authority could focus auditing efforts on low-appraisal transactions. We include `behavioural' components (shame and stigma) allowing to introduce buyers' and societal characteristics that explain individual and idiosyncratic variations. Our empirical analysis confirms the predictions using a unique database for Spain, where we directly observe: real payment, value declared to the authority, appraisal, buyers' educational level and local levels of corruption and trust.
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https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/1080.pdf. (EVS)
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EVS-Bibliography
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Transaction-tax Evasion in the Housing Market
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(1080), 45, 2019
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Bibsonomy
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European Values Study (EVS)
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2019
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EB_contra
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EVS
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EVS_input2020
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EVS_pro
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FDZ_IUP
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checked
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datfeld
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english
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kbe
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techreport
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transfer20
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vttrans
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