Value added tax (VAT) and retail sales tax (RST) are economically equivalent tax alternatives on consumption expenditure. This paper shows that, if indirect taxation is joined to direct taxation, with unethical agents, the equivalence in terms of government's revenues does not hold. We consider...

This article analyzes the effects of the compliance relationship between the governing party and two competing bureaus producing differentiated goods. We assume that the three players simultaneously and independently take their decision in terms of production and rents with perfect knowledge of...

The literature on corruption makes unclear predictions on the relations between subsidiarity principle, according to which public decisions should be done at the lower level government possible, and corruption of public officials. In this paper, we compare two alternative regimes, centralised...