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• W3122079732 abstract "We study the underground economy within 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 increased steadily over the whole sample period. We show that this pattern is due to a steady increase in taxation. Fiscal policy experiments suggest that a moderate tax cut, along with a stronger effort in the monitoring process, causes a sizeable reduction in the size of the underground economy and provides a positive stimulus for the regular economy. Both of these effects jointly increase total fiscal revenues." @default.
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• W3122079732 date "2014-07-01" @default.
• W3122079732 modified "2023-10-18" @default.
• W3122079732 title "Size, trend, and policy implications of the underground economy" @default.
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• W3122079732 doi "https://doi.org/10.1016/j.red.2013.11.001" @default.
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