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A note on optimal tax evasion in the presence of merit goods

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Author Info
Rosella Levaggi
Francesco Menoncin

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Abstract

In a recent article Davidson, Lawrence and Wilson propose a model showing that, in the presence of distortionary taxations and goods of different quality, tax evasion can be an optimal device. Here, we show that this result, although quite interesting, cannot be generalised to a framework where Government activity consists of supplying merit goods and levying taxes to finance their provision.

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Paper provided by University of Brescia, Department of Economics in its series Working Papers with number 0702.

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Date of creation: 2007
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Handle: RePEc:ubs:wpaper:0702

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  1. Amedeo Fossati & Rosella Levaggi, 2008. "Delay is not the answer: waiting time in health care & income redistribution," Working Papers 0801, University of Brescia, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-15.


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