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Inflation Tax and the Hidden Economy

Ercolani, Marco G (2000) Inflation Tax and the Hidden Economy. Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.

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Abstract

Differential tax analysis is used to show how the optimal mix of inflation tax and direct taxation changes with the relative size of the hidden economy. The larger the relative size of the hidden economy, the smaller the optimal ratio of direct tax to inflation tax. Anecdotal empirical evidence supports this result.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: Hidden/Shadow economy, Optimal inflation tax, Seignorage.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jenny Connolly
Date Deposited: 28 Aug 2014 15:13
Last Modified: 28 Aug 2014 15:13
URI: http://repository.essex.ac.uk/id/eprint/8829

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