Tax evasion from the perspective of behavioral economics, winning topic in CAF’s #IdeasForTheFuture competition

The essay “Reducing Tax Evasion in Latin America and the Caribbean: Experiences based on Behavioral Economics” by Gabriela Andrade Saráuz, a student of the Faculty of Economics at the Pontifical Catholic University of Ecuador, is the winner of the second edition of the IdeasForTheFuture university essay competition, organized by CAF—development bank of Latin America—and the Central Bank of Ecuador.

The essay analyzes the problem of tax evasion within the global context of the COVID-19 crisis, suggesting that certain interventions based on behavioral economics might be able to curb tax evasion, improve tax compliance and increase tax revenues.

Daniel Rivera, CAF representative in Ecuador, highlighted CAF’s interest in building a space for young students to express their ideas on how a better future for the region can be consolidated. “Listening to young people has been the motivation for this essay competition, which undoubtedly serves as input for the discussion to build a better future for the region.”

Furthermore, Central Bank of Ecuador General Manager Veronica Artola Jarrín noted that initiatives such as this competition serve as input on the challenges and proposals to solve the problems facing different countries in Latin America and the Caribbean.

The winning essay at national level will compete, along with 11 other finalists, in the final phase of the competition, and the winning essays at Ibero-American level will be presented at the CAF Conference in Latin America, to be held in Mexico City on November 5–6, 2020.