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Monica Singhal receives German Economic Association research prize for new findings on corporate tax evasion

Professor Monica Singhal has been awarded the 2018 Excellence Prize of the German Economic Association's Research Group on Development Economics. The 5000 Euro prize, which is supported by the KfW Development Bank, is awarded annually for an article that demonstrates excellence in policy-relevant research on developing countries.

This year's prize recognizes Professor Singhal's paper "Dodging the Taxman: Firm Misreporting and Limits to Tax Enforcement", published last year in the American Economic Journal: Applied Economics. With her coauthors Paul Carrillo (George Washington University) and Dina Pomeranz (University of Zurich), Singhal found evidence of widespread tax misreporting among Ecuadorian corporations. Even when notified of apparent discrepancies by tax authorities, only a small share of firms filed amended tax returns; those that did so reported offsetting increases in both revenues and costs, resulting in little increase in collected tax revenue. The findings highlight the limits of using third-party reporting to increase tax compliance in the absence of credible monitoring and enforcement.

Professor Singhal was also recently appointed Co-Editor of the prestigious Journal of Public Economics.