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To examine the macro economic effects of government tax and punishment policies, this paper develops a three-sector general quilibrium model featuring matching frictions, heterogenous abilities and an informal sector with tax evasion. The choice of education is determined endogenously. Job...
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This paper is concerned with social interactions and their importance for unemployment. A theoretical model is … specified in which the psychological costs of unemployment depend upon the unemployment level. The analysis reveals social … multiplier effects, and shows that multiple unemployment equilibria may emerge. Data on all 20- to 24-year-olds living in …
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We build a general equilibrium model in terms of a search and matching model with an informal sector. We consider the impact of the traditional policy instruments considered in the tax evasion literature, such as changes in the tax- and punishment system as well as changes in the employment...
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