The Underground Economy: Minimizing the Size of Government

David Giles

No 9808, Econometrics Working Papers from Department of Economics, University of Victoria

Abstract: This paper duscusses the author's work on measuring and modelling the New Zealand underground economy, 1968-1994. Particular attention is paid to the relationship between this activity and taxation policy. An optimal level for the effective tax rate is reported, in terms of maximizing the impact on the underground economy. The implications for the "tax gap" in that country are examined, and some possible implications for Canada are drawn by combining these results with those of other authors for the latter country.

Keywords: Hidden Economy; Underground Economy; Tax Avoidance; Tax Evasion; Tax Gap (search for similar items in EconPapers)
JEL-codes: C12 C22 (search for similar items in EconPapers)
Pages: 18 pages
Date: 1998-03-31
New Economics Papers: this item is included in nep-cdm, nep-eec, nep-pbe, nep-pol and nep-pub
Note: ISSN 1485-6441. This paper was presented at the Fraser Institute Conference on "How to Spend the Fiscal Dividend : What is the Optimal Size of Government?", Ottawa, December, 1997.
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: The Underground Economy: Minimizing the Size of Government (1998)
Working Paper: The Underground Economy: Minimizing the Size of Government (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:vic:vicewp:9808

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