Effects of the taxation of wealth in Athens in the fourth century B. C.

Abstract

In the fourth century B.C., Athenians were often accused of avoiding their civic obligations and of concealing their wealth.1 These attested cases show that economic behaviour in classical Athens could be affected by taxation. The purpose of the present study is to systematically explore the economic incentives resulting from the taxation of wealth. The first issue is the effects of the property taxes on the relative attractiveness of different assets. An important influence is the incentive to avoid taxation, and it will also be demonstrated that the marginal rate of taxation could be quite large. In addition, the difference in treatment between citizens and foreigners will be investigated, as well as some implications of the irregular nature of the taxes on wealth.