Ruben Enikolopov , NES, ICREA-UPF, IPEG| 23.12.2019

Tax Evasion of Politically Connected Firms

What is the value of political connections created by hiring a government offical or his/her relative?

  • Look at the effect of establishing connection, not losing it
  • Look at the role of the bureaucrats rather than elected officials

Identify direct channels in which companies may benefit from having political connections
  • Tax evasion
  • Funds received from governmen