This paper investigates the relationship between tax base distribution and tax collection rate. We approach the tax collection problem using traditional industrial organization tools. Thus, we model the tax optimization industry and investigate the impact of the change in aggregate demand on the...

In this paper we review and extend some of the key lessons that seem to be emerging from the Ramsey-inspired theory of dynamic optimal monetary and fiscal policies. We construct measures of the key distortions in our economy; we label these ‘dynamic wedges’. Inflation, actual or...