Aula Magna - Facoltà di Economia
Viale Sant'Ignazio 74 - Cagliari
Presentation of paper
Tax evasion and market incompleteness
Marco Maffezzoli - IGIER Bocconi
The available empirical evidence suggests that the distribution of income and its composition play an important role in explaining tax on compliance. We address the issue from a macroeconomic point of view, building a dynamic general equilibrium Bewley model that jointly endogenizes the determinants of tax evasion and income heterogeneity. Our results show that the model can successfully replicate the salient qualitative features of the data, but cannot perfectly replicating some of the quantitative ones.
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