The canonical theory of taxation holds that the incidence of a tax is independent of the side of the market which is responsible for remitting the tax to the government. However, this prediction does not survive in certain circumstances, for example when the ability to evade taxes differs across...

The canonical theory of taxation holds that the incidence of a tax is independent of the side of the market which is responsible for remitting the tax to the government. However, this prediction does not survive in certain circumstances, for example when the ability to evade taxes differs across...

The condition that characterizes the optimal size of a tax-collection agency is der ived and then given a simple interpretation in terms of excess burden This paper clarifies an earlier finding of A. Sandmo (1981) which s uggests that the optimal degree of enforcement is higher than a simpl e...