Arbex, Marcelo; Mattos, Enlinson; Ogura, Laudo M. - Department of Economics, University of Windsor - 2013
Tax enforcement costs constrain the government?s ability to observe economic transactions, giving rise to hard-to-tax (HTT) markets. In these markets transactions are untaxed and consumers are better off than in taxed markets. This paper studies a novel approach to combat evasion in HTT markets:...