Gahvari, Firouz; Micheletto, Luca - In: Journal of Public Economics 119 (2014) C, pp. 10-23
This paper models a two-period overlapping-generations economy with money populated with individuals of different skills. They face a nonlinear income tax schedule and can engage in tax evasion. Money serves two purposes: the traditional one, modeled through a money-in-the-utility-function; it...