Macho-Stadler, Inés; Pérez-Castrillo, David - In: Economica 71 (2004) 283, pp. 349-368
It is often argued that, even if optimal "ex post", settlement dilutes deterrence "ex ante". We analyse the interest for the tax authority of committing, "ex ante", to a settlement strategy. We show that to commit to the use of settlements is "ex ante" optimal when the tax authority receives...