Vasilev, Aleksandar - In: Journal of Economic Studies 45 (2018) 3, pp. 598-609
Purpose: The purpose of this paper is to show a standard RBC model, when augmented with a VAT evasion channel, where evasion depends on the consumption tax rate, can produce a hump-shaped consumption-Laffer curve. Design/methodology/approach: The methodology is in the spirit of modern...