Redistribution and Tax Evasion: an Asymmetric Information Approach
AbstractThe article studies the optimal redistribution system, achieved by direct taxation, indirect taxation and public provision of the pseudo-necessary good, when individuals, who differ in productivity, can take hidden actions (tax evasion by moral hazard) and have hidden information (tax evasion by adverse selection). It proves that any Government willing to effectively reallocate resources among individuals has to undertake measures against tax evasion, i.e. to establish tax evasion fines.
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Bibliographic InfoPaper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali with number dises1394.
Length: 35 pages
Date of creation: Jul 2013
Date of revision:
Publication status: Published in Review of Economics, Month aaaa, pages nn1-nn2
Redistribution; Tax Evasion; Asymmetric Information.;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-08-05 (Accounting & Auditing)
- NEP-ALL-2013-08-05 (All new papers)
- NEP-CTA-2013-08-05 (Contract Theory & Applications)
- NEP-IUE-2013-08-05 (Informal & Underground Economics)
- NEP-PBE-2013-08-05 (Public Economics)
- NEP-PUB-2013-08-05 (Public Finance)
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