Optimal taxation and monitoring in an economy with matching frictions and underground activities

Eastern Journal of European Studies

关键词: optimal taxation;    tax evasion;    underground economy;    job search;   

DOI  :  

来源: DOAJ

【 摘 要 】

This short paper shows the interdependence of taxation and monitoring policy in a search and matching model of equilibrium unemployment with an underground sector. More precisely, from a social welfare standpoint, two options are available to the policy maker: she/he may either substitute a tighter monitoring with a higher penalty or enforce both a higher taxation and an increased monitoring.

【 授权许可】

Unknown