Social contract, taxation and the standing of deadweight loss
Article Abstract:
An analysis of the relationships among social contract, taxation and deadweight loss is presented. The analysis considers a theory which provides that a good tax system's normative design is influenced by the social contract which governs society. The developed model is then compared with results of other models which premise earnings with benefit taxation and maximum welfare. It is shown that the proposed model presents a questionable case for tax avoidance and deadweight loss.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1992
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Taxation, wage controls and the informal sector
Article Abstract:
A study aimed at examining the impact of taxation and wage controls in the economy of a developing country employed a model with firm heterogenity, in which a formal and informal sector arise in some productive branches of the economy. The model provides an answer for the observed discontinuity in the distribution of firms size, based on the belief that the marginal cost of tax and regulation evasion grows with the size of the firm.
Publication Name: The Journal of Public Economics
Subject: Government
ISSN: 0047-2727
Year: 1997
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