UENG, K. L. GLEN; YANG, C. C. - In: Journal of Public Economic Theory 8 (2006) 3, pp. 453-463
<link rid="b3">Andreoni, Erard, and Feinstein (1998)</link> suggest that imposing very high penalties for tax evasion is not possible under bankruptcy or limited liability constraints. In this paper, we complement their suggestion by showing that, in the presence of these constraints, imposing very high penalties can...