Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
969514 | Journal of Public Economics | 2007 | 16 Pages |
Abstract
This paper investigates analytically the welfare effects of black-market activities that firms undertake to evade taxes. The desirability of a black market is linked to the attributes of the goods supplied by black-market firms. The analysis identifies cases where a black market reduces (increases) the distortionary impact of taxation on the allocation of resources across the goods that the government is attempting to tax, leading to a welfare gain (loss).
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Carl Davidson, Lawrence Martin, John Douglas Wilson,