In an overlapping generations model, in which savings and tax evasion are endogenous, tax evasion will have a negative effect on long-term growth if public services are productive inputs for private producers. It is shown in the paper that tax evasion reduces the endogenous growth rate....

This paper analyzes how deviating from individual taxation affects married couples. The focus is on time allocation, on investment in family-specific human capital and on distribution of income within the family. Two insights are discussed in detail. First, the distribution of tax-reduction...