Browsing Department of Economics by Subject "optimal taxation"
Now showing items 1-3 of 3
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An evasive topic: theorizing about the hidden economy
(Journal article; Peer reviewed, 2012)This paper reviews some central issues that arise in theorizing about tax evasion decisions and the hidden economy. It starts from the Allingham-Sandmo (1972) modelling of the tax evasion decision as a choice under ... -
First-best optimality in capital income taxation
(Discussion paper, Working paper, 2004-10)In case of risk, especially aggregate risk which cannot be insured, the literature states that for achieving first-best optimality state-dependent lumpsum taxes are absolutely necessary. However, we show in a two-asset ... -
Optimal income taxation with a risky asset : the triple income tax
(Discussion paper, Working paper, 2004-06)We show in a two-period world with endogenous savings and two assets, one of them exhibiting a stochastic return that an interest adjusted income tax is optimal. This tax leaves a safe component of interest income tax ...