Lisi, Gaetano (2010): Optimal taxation and monitoring in an economy with matching frictions and underground activities.
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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|
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