Economics at your fingertips  

Offre de travail au noir en présence de la fiscalité et des contrôles fiscaux

Bernard Fortin (), Nadia Joubert and Guy Lacroix ()

Economie & Prévision, 2004, vol. n° 164-165, issue 3, 145-163

Abstract: This paper presents an econometric model of labour supply on official and underground markets in the presence of taxes and fraud prevention policies. We specify a quadratic utility function in order to impose a minimum of restrictions on individuals’ preferences. The parameters of this utility function are estimated using the full-information maximum likelihood method. Our approach accounts for the endogenous nature of the probability of detection and penalties. This eliminates the potential bias introduced by cognitive dissonance associated with subjective variables. Wemade the estimates using individual Canadian data. Our findings confirm the influence of tax levels and tax enforcement and reject the hypotheses of additive separability of the utility function and perfect substitution of hours worked in the official and underground economies.

Keywords: underground economy; taxation; social transfers; decisions under uncertainty; full information maximum likelihood (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
Journal Article: Offre de travail au noir en présence de la fiscalité et des contrôles fiscaux (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economie & Prévision from La Documentation Française
Series data maintained by Jean-Baptiste de Vathaire ().

Page updated 2017-11-13
Handle: RePEc:cai:ecoldc:ecop_164_0145