Why must it always be so Real with tax evasion?

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dc.contributor.author Gupta, Rangan
dc.contributor.author Makena, Philton
dc.date.accessioned 2021-09-20T09:15:16Z
dc.date.issued 2020-11
dc.description.abstract We provide an alternative theoretical explanation to the tax evasion-inflation relationship by endogenizing the discount factor in an overlapping generations economy. When the discount factor is a positive function of public expenditure, i.e., discounting is endogenous, then an increase in inflation leads to an increase seigniorage, and hence the discount factor via the rise in public expenditure. In consequence, old age consumption increases in importance such that tax evasion among young-age agents increases to enhance the interest income from savings. en_ZA
dc.description.department Economics en_ZA
dc.description.embargo 2022-05-17
dc.description.librarian hj2021 en_ZA
dc.description.uri http://www.elsevier.com/locate/qref en_ZA
dc.identifier.citation Gupta, R. & Makena, P. 2020, 'Why must it always be so Real with tax evasion?', The Quarterly Review of Economics and Finance, vol. 78, pp. 304-308. en_ZA
dc.identifier.issn 1062-9769
dc.identifier.other 10.1016/j.qref.2020.04.006
dc.identifier.uri http://hdl.handle.net/2263/81910
dc.language.iso en en_ZA
dc.publisher Elsevier en_ZA
dc.rights © 2020 Published by Elsevier Inc. on behalf of Board of Trustees of the University of Illinois. Notice : this is the author’s version of a work that was accepted for publication in Quarterly Review of Economics and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in Quarterly Review of Economics and Finance, vol. 78, pp. 304-308, 2020. doi : 10.1016/j.qref.2020.04.006. en_ZA
dc.subject Tax evasion en_ZA
dc.subject Inflation en_ZA
dc.subject Endogenous discount factor en_ZA
dc.subject Overlapping generations economy en_ZA
dc.subject Public expenditure en_ZA
dc.title Why must it always be so Real with tax evasion? en_ZA
dc.type Postprint Article en_ZA


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