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It is standardly assumed that individuals adjust to perceived unfairness or norm violations in precisely the same area or relationship where the original offense has occurred. However, grievances over being exposed to injustice may have even broader consequences and also spill over to other...
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While examining the macroeconomic effects of increased government control of the informal sector, this paper develops a two-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers search for jobs in both the formal and the informal sector. We...
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Italian economy that, among European countries, is the second for high public debt and has one of the highest size of tax … evasion. Results show that it is possible to both reduce public debt and tax evasion through a temporary cut in public … spending associated with a permanent drop in tax rates. In this context a reallocation of resources from the underground to …
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Vast literature is available covering main Informal Economy (IE) causes and consequences for Latin America and Caribbean (LAC), but its size estimation has been mainly limited to worldwide models applied to the region. This paper proposes a MIMIC Base Model using a data set composed by 41...
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