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- W2055257509 abstract "We study the underground economy in a dynamic and stochastic general equilibrium framework. Our model combines limited tax enforcement with an otherwise standard two-sector neoclassical stochastic growth model. The Bayesian estimation of the model based on Italian data provides evidence in favor of an important underground sector in Italy, with a size that has steadily increased over the whole sample period. We show that this pattern is due to a persistent increase in taxation. Fiscal policy experiments suggest that a moderate tax cut, along with a stronger eff ort in the monitoring process, causes a sensitive reduction in the size of the underground economy and positive stimulus to the regular sector that jointly increase the total fiscal revenues." @default.
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- W2055257509 date "2012-01-01" @default.
- W2055257509 modified "2023-10-10" @default.
- W2055257509 title "Estimating the Size of the Underground Economy: A DSGE Approach" @default.
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- W2055257509 doi "https://doi.org/10.2139/ssrn.2021261" @default.
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