A dynamic portfolio choice model of tax
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Wen-Zhung Lin; C.C. Yang
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Article
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2001
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Elsevier Science
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English
⚖ 126 KB
This paper extends the portfolio choice model of tax evasion from a static to a dynamic setting. It is shown that while higher tax rates repress tax evasion in the static model, they encourage tax evasion in the dynamic model. We explore a novel implication of this result and show that while growth