Journal Articles
Discussion Papers
Journal Article
2007-6
Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio
June 28, 2007
Abstract
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.
Citation
Marco G. Ercolani (2007). Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio. Economics: The Open-Access, Open-Assessment E-Journal, Vol. 1, 2007-6.
http://www.economics-ejournal.org/economics/journalarticles/2007-6