Informal Sector, Fiscal Policy, and Growth: Theory and Some Empirical Evidence
Marco Di Domizio ()
Public Finance = Finances publiques, 1998, vol. 53, issue 3-4, 419-38
This paper uses an endogenous growth model to investigate the relationships among the fiscal policy, the informal sector and the economic growth. It is shown that the proportion of informal to formal production could be negatively correlated with the fiscal rate if the enforcement policy of the government is made endogenous. Conditions under which this is possible and the implications for a new set of relationships between fiscal policy and economic growth are discussed. Some empirical evidence for the new relationships is obtained by an econometric investigation focused on the Italian experience of enforcement policy and growth.
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:53:y:1998:i:3-4:p:419-38
Access Statistics for this article
More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().