search query: @author Schroyen, F. / total: 6
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| Author: | Schroyen, F. |
| Title: | Pareto efficient income taxation under costly monitoring |
| Journal: | Journal of Public Economics
1997 : SEP, Vol. 65:3, p. 343-366 |
| Index terms: | PARETO LAW INCOME TAX LABOUR MARKETS |
| Language: | eng |
| Abstract: | The study deals with the problem of Pareto efficient fiscal policies when labour supply is elastic and the government has no a priori information on income earned. The model is a two-class economy with an official and an unofficial labour market. Official income is taxed non-linearly, while unofficial income is only observable after a costly audit upon which it is taxed at an exogenous penalty rate. After characterisation of the Pareto efficient audit and tax policies, it is verified how these policies react to a higher government revenue requirement, an increase in the penalty rate, a stronger ambition to redistribute. |
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