compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … efficiency wages, it is shown that a balanced-budget shift from a payroll tax to a VAT will increase employment if the rise in …

Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices …. Empirically, a positive relationship between corporate and personal income tax evasion can be observed. The theoretical analysis … the gain from reducing corporate tax payments is certain, as in the case of tax avoidance. If, however, the firm evades …

having uncertain employment effects. A higher marginal income tax rate increases employment. Changes solely in the level of … therefore does not alter the effects of tax changes in comparison to a right-to-manage model with exogenously fixed level of …

, the tax base. A higher taxable income, in turn, can make tax evasion more attractive. We show for various specifications … of preferences that the tax base effect generally dominates. Consequently, relative consumption effects tend to reduce … tax evasion. This is true, irrespective of whether tax parameters are exogenous, guarantee a balanced budget or are set …

period and evade taxes. Period-two income rises with educational investments in period one and can also be hidden from tax … authorities. It is shown that a greater tax deductibility of educational investments and higher individual ability induce a … positive correlation between tax evasion and educational investments in period two, whereas the relationship in period one is …

, the tax base. A higher taxable income, in turn, can make tax evasion more attractive. We show for various specifications … of preferences that the tax base effect generally dominates. Consequently, relative consumption effects tend to reduce … tax evasion. This is true, irrespective of whether tax parameters are exogenous, guarantee a balanced budget or are set …

a systematic manner with the legal rules as defined by labour as well as tax law. We start with a theoretical model that …

a systematic manner with the legal rules as defined by labour as well as tax law. We start with a theoretical model that …

This contribution describes the linkage of microsimulation models and computable general equilibrium (CGE) models using …, microsimulation models allow for detailed labor supply and distributional effects due to policy measures, as individual household data …