Vasilev, Aleksandar - In: Review of Economics and Institutions 8 (2017) 2, pp. 1-17
This paper utilizes an otherwise standard micro-founded general-equilibrium setup, which is augmented with a revenue-extraction mechanism to assess the magnitude of VAT evasion. The model is calibrated to Bulgaria after the introduction of the currency board (1999-2014), as one of the very few...