Summary This paper investigates the relationship between the underground economy and tax evasion through a microeconomic model based on portfolio theory. The underground economy is assumed to be the result of bureaucracy, excessive regulation, and tax evasion. The main conclusion of the analysis...

Abstract This paper elaborates upon the following three theses: First, given bank sector concentration, the other aspect of this sector that matters for the overall economy is that of price vs . quantity competition by itself. Second, the macroeconomic performance of price competition is...