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EnglishThe paper evaluates the relative effect of deterrence, prevention, curative and commitment policy measures on the size of undeclared work in a real business cycle model with undeclared work, tax evasion and search frictions in the labour market. A numerical application of the model to the European economy shows that all these approaches reduce the undeclared share of output, but that deterrence and commitment policies also produce a negative effect on stationary employment. The curative approach produces the sharper fall in undeclared work while stimulating stationary output and employment.
| Titolo: | Tackling Undeclared Work. Suggestions from a Business Cycle Model with Search Frictions. |
| Autori: | |
| Data di pubblicazione: | 2014 |
| Rivista: | |
| Abstract: | The paper evaluates the relative effect of deterrence, prevention, curative and commitment policy measures on the size of undeclared work in a real business cycle model with undeclared work, tax evasion and search frictions in the labour market. A numerical application of the model to the European economy shows that all these approaches reduce the undeclared share of output, but that deterrence and commitment policies also produce a negative effect on stationary employment. The curative approach produces the sharper fall in undeclared work while stimulating stationary output and employment. |
| Handle: | http://hdl.handle.net/11367/29607 |
| Appare nelle tipologie: | 1.1 Articolo in rivista |
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