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distortionary taxation of money may be needed as part of the optimal policy even if lump-sum taxes are available. …
Persistent link: https://www.econbiz.de/10005077872
We construct a dynamic, general equilibrium model of tax evasion where agents choose to report some of their income. Unreported income requires using a payment method that avoids recordkeeping – cash. Trade using cash to avoid taxes is the theoretical measure of the shadow economy from our...
Persistent link: https://www.econbiz.de/10009141707