Busato, Francesco; Chiarini, Bruno; Marchetti, Enrico - In: The open economics journal 3 (2010), pp. 14-24
This paper shows that an increase in corporate/labor/income tax rates may push an economy with tax evasion into an expansionary pattern, under increasing returns to scale. These effects would be reversed when the steady state is saddle-path stable. This model does not undertake a full...
