Artikel
Tax shocks, sunspots and tax evasion
This paper shows that an increase in corporate/labor/income tax rates may push an economy with tax evasion into an expansionary pattern, under increasing returns to scale. These effects would be reversed when the steady state is saddle-path stable. This model does not undertake a full identification. The interesting feature of our results is that fiscal policy in an economy with a significant underground sector may provide inadvisable outcomes. Thus, tax policies can generate counterproductive results in an economy characterized by existence of aggregate increasing returns to scale and underground activities.
- Language
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Englisch
- Bibliographic citation
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Journal: The Open Economics Journal ; ISSN: 1874-9194h ; Volume: 3 ; Year: 2010 ; Pages: 14-24 ; Sharjah: Bentham Open
- Classification
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Wirtschaft
- Subject
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dynamic general equilibrium models
fiscal policy
tax evasion and underground activities
indeterminacy and sunspots
- Event
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Geistige Schöpfung
- (who)
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Busato, Francesco
Chiarini, Bruno
Marchetti, Enrico
- Event
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Veröffentlichung
- (who)
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Bentham Open
- (where)
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Sharjah
- (when)
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2010
- DOI
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doi:10.2174/1874919401003010014
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Busato, Francesco
- Chiarini, Bruno
- Marchetti, Enrico
- Bentham Open
Time of origin
- 2010