Since de Soto’s work, the entrepreneur’s choice to enter or not the formal sector is usually compared to a tax evasion … unknown by managers. This article tries to assess the accuracy of tax determinants on the formal-informal dualism. For that … purpose a tax evasion model is build and then tested on data from a survey undertaken in Antananarivo. Our regressions show …

This paper analyses whether it is worth taxing the black market. A theoretical optimal tax model provides a first … analytical discussion. An empirical version allows us to estimate an optimal tax system for Madagascar. For reasonable inequality … aversion parameters, the taxation’s rate of the informal good is always quite below the formal good’s one. Nevertheless, tax …