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51 p, 666.0 KB Fiscal consolidation with tax evasion and corruption / Pappa, Evi (European University Institute (Itàlia)) ; Sajedi, Rana (European University Institute (Itàlia)) ; Vella, Eugenia (European University Institute (Itàlia))
Using cross country data we show that tax evasion and corruption are highly important for determining the size of the . scal multiplier. We introduce these two features in a New Keynesian model with search and matching frictions, in order to revisit the e¤ects of tax and expenditure based consolidations. [...]
2015 - 10.1016/j.jinteco.2014.12.004
Journal of international economics, Vol. 96 Núm. 1 (2015) , p. s56-s75  
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