Tax evasion and labour supply in Norway in 2003: Structural models versus flexible functional form models
A Box-Cox structural utility model is estimated on tax evasion survey data and it is shown that this model gives a better representation of individual utility maximizing behavior than a flexible model, represented by a polynomial of degree 3. It is found that an overall wage increase has a positive impact on hours worked in the regular part of the economy and a negative impact on hours work in the irregular part.
|Date of creation:||10 May 2005|
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