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Redistribution through tax evasion

Adam, Antonis and Kammas, Pantelis (2011): Redistribution through tax evasion.

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Abstract

Using a simple model of income redistribution, we show that the government may use tax evasion as a way to redistribute income from the non- evaders to evaders. This will result then to a negative association between income inequality and per capita transfers and inefficiently high taxes.

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