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Abstract:

We developed a simple monetary model to study the effects of tax evasion on the optimal inflation tax. The model is constructed so that inflation might be an indirect way of taxing the underground sector of the economy. We show that while there are theoretical reasons for positive optimal inflation rates, the effects are quantitatively small, even in countries with large underground sectors. We calculate the optimal nominal interest rate for Peru to be between 7% and 19%, despite the fact that its underground sector is close to 40% of measured GNP. According to our calculations, the welfare gain of using inflation to tax the underground sector is also very small. © 1998 Elsevier Science B.V.

Registro:

Documento: Artículo
Título:Tax evasion and the optimal inflation tax
Autor:Nicolini, J.P.
Filiación:Universidad Torcuato Di Tella, Minones 2159, (1428) Buenos Aires, Argentina
Universitat Pompeu Fabra, Barcelona, Spain
Palabras clave:Friedman rule; Inflation; Underground economy; inflation; interest rates; modelling approach; Peru
Año:1998
Volumen:55
Número:1
Página de inicio:215
Página de fin:232
Título revista:Journal of Development Economics
Título revista abreviado:J. Dev. Econ.
ISSN:03043878
Registro:https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_03043878_v55_n1_p215_Nicolini

Referencias:

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  • Correia, I., Teles, P., Money as an intermediate good and the welfare cost of the inflation tax (1994) Forthcoming, J. Monetary Econ., , Mimeo, Banco de Portugal
  • Correia, I., Teles, P., (1996) The Optimal Inflation Tax, , Mimeo, Banco de Portugal
  • Chamley, C., The welfare cost of capital income taxation in a growing economy (1981) J. Political Econ.
  • Chari, V., Christiano, L., Kehoe, P., Optimality of the Friedman rule in economies with distorting taxes (1993) Federal Reserve Bank of Minneapolis Staff Report 158
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  • Tanzi, V., (1982) The Underground Economy in the United States and Abroad
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Citas:

---------- APA ----------
(1998) . Tax evasion and the optimal inflation tax. Journal of Development Economics, 55(1), 215-232.
Recuperado de https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_03043878_v55_n1_p215_Nicolini [ ]
---------- CHICAGO ----------
Nicolini, J.P. "Tax evasion and the optimal inflation tax" . Journal of Development Economics 55, no. 1 (1998) : 215-232.
Recuperado de https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_03043878_v55_n1_p215_Nicolini [ ]
---------- MLA ----------
Nicolini, J.P. "Tax evasion and the optimal inflation tax" . Journal of Development Economics, vol. 55, no. 1, 1998, pp. 215-232.
Recuperado de https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_03043878_v55_n1_p215_Nicolini [ ]
---------- VANCOUVER ----------
Nicolini, J.P. Tax evasion and the optimal inflation tax. J. Dev. Econ. 1998;55(1):215-232.
Available from: https://bibliotecadigital.exactas.uba.ar/collection/paper/document/paper_03043878_v55_n1_p215_Nicolini [ ]