Presentation of paper

Tax evasion and market incompleteness

Speaker

Marco Maffezzoli - IGIER Bocconi

Abstract

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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