Resource title

Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio

Resource image

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Resource description

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical cross-section and panel evidence supports this theoretical result.

Resource author

Marco G. Ercolani

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17933

Resource license

Adapt according to the presented license agreement and reference the original author.