Arbeitspapier

Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical cross-section and panel evidence supports this theoretical result.

Language
Englisch

Bibliographic citation
Series: Economics Discussion Papers ; No. 2007-10

Classification
Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Monetary Policy
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Price Level; Inflation; Deflation
Subject
inflation tax
hidden/shadow/underground economy
seigniorage

Event
Geistige Schöpfung
(who)
Ercolani, Marco G.
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2007

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ercolani, Marco G.
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2007

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