Lisi, Gaetano (2010): Optimal taxation and monitoring in an economy with matching frictions and underground activities.
Download (157Kb) | Preview
This short paper shows the interdependence of taxation and monitoring policy in a search and matching model of equilibrium unemployment with an underground sector. More precisely, from a social welfare standpoint, two options are available to the policy maker: s/he may either substitute a tighter monitoring with a higher penalty or enforce both a higher taxation and an increased monitoring.
|Item Type:||MPRA Paper|
|Original Title:||Optimal taxation and monitoring in an economy with matching frictions and underground activities|
|Keywords:||optimal taxation, tax evasion, underground economy, job search theory|
|Subjects:||H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency; Optimal Taxation
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E26 - Informal Economy; Underground Economy
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion
|Depositing User:||Gaetano Lisi|
|Date Deposited:||27. Dec 2010 19:47|
|Last Modified:||15. Feb 2013 23:07|
Albrecht, James, Lucas Navarro, and Susan Vroman (2009), “The Effects of Labour Market Policies in an Economy with an Informal Sector,” Economic Journal, 119(539), July, 1105-1129.
Boeri, Tito, and Pietro Garibaldi (2002), “Shadow Activity and Unemployment in a Depressed Labour Market,” CEPR Discussion Papers, 3433, June.
Boeri, Tito, and Pietro Garibaldi (2006), “Shadow Sorting ”, Fondazione Collegio Carlo Alberto Working Paper Series, 10, May.
Bouev, Maxim (2002), “Official Regulations and the Shadow Economy: A Labour Market Approach”, William Davidson Institute Working Papers Series, 524, December.
Bouev, Maxim (2005), “State Regulations, Job Search and Wage Bargaining: A Study in the Economics of the Informal Sector”, William Davidson Institute Working Papers Series, 764, April.
Fugazza, Marco, and Jean-Francois Jacques (2004), “Labour market institutions, taxation and the underground economy,” Journal of Public Economics, 88(1-2), January, 395-418.
Gërxhani, Klarita (2004), “The Informal Sector in Developed and Less Developed Countries: A Literature Survey”, Public Choice, Springer, 120(3-4), 09, 267-300.
Kolm, Ann-Sofie, and Birthe Larsen (2003), “Wages, Unemployment, and the Underground Economy”, CESifo Working Paper Series, 1086, November.
Kolm, Ann-Sofie, and Søren Bo Nielsen (2008), “Under-reporting of Income and Labor Market Performance”, Journal of Public Economic Theory, 10(2), 04, 195-217.
Petrongolo, Barbara, and Christopher A. Pissarides (2001), “Looking into the Black Box: A Survey of the Matching Function,” Journal of Economic Literature, 39(2), June, 390-431.
Pissarides, Christopher A. (2000), Equilibrium Unemployment Theory (2nd Edition), The MIT Press.
Shimer, Robert (2005), “The Cyclical Behavior of Equilibrium Unemployment and Vacancies”, American Economic Review, 95(1), 25-49.