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ralph lauren polo

Emin Gahramanov
''Tax Evasion and Dynamic Inefficiency''
( 2009, Vol. 29 No.1 )
I show within a two-period overlapping generations model with income tax evasion that when the penalty rate set by the government is su¢ ciently small, it is theoretically possible for the capital stock to exceed the golden-rule level on the balanced-growth path. However, such a dynamic inefficiency cannot be guaranteed when the probability of evasion detection is nil.
JEL: D9 - Intertemporal Choice and Growth: General
H2 - Taxation, Subsidies, and Revenue: General
Manuscript Received : Nov 16 2008 Manuscript Accepted : Mar 25 2009

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