Lisi, Gaetano; Pugno, Maurizio - In: Czech Economic Review 5 (2011) 2, pp. 116-131
This paper incorporates tax morale into a search and matching model of equilibrium unemployment, with on-the-job search, extended to both the irregular sector and entrepreneurship. Tax morale is modelled as a social norm for tax compliance which renders evasion costly. The moral cost of tax...