Progressive wealth taxes may be difficult to enforce if wealthy individuals underreport their wealth, but disclosure incentives and greater enforcement can improve tax collection.

Juliana Londoño-Vélez presents her work with Javier Avila-Mahecha which uses rich administrative data from Colombia and leverages a government-designed program for voluntary disclosures of hidden wealth, as well as the threat of detection triggered by the Panama Papers leak.

Paper:

"Enforcing Wealth Taxes in the Developing World: Quasi-Experimental Evidence from Colombia" by Juliana Londoño-Vélez & Javier Ávila-Mahecha

https://www.aeaweb.org/articles?id=10.1257/aeri.20200319&from=f

Recommendation

"Good Economics for Hard Times: Better Answers to Our Biggest Problems" (2019) by Abhijit V. Banerjee, Esther Duflo

https://www.goodreads.com/book/show/51014619-good-economics-for-hard-times

"Markets, Minds, and Money: Why America Leads the World in University Research" (2020) by Miguel Urquiola

https://www.hup.harvard.edu/catalog.php?isbn=9780674244238

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