A dynamic portfolio choice model of tax
β
Wen-Zhung Lin; C.C. Yang
π
Article
π
2001
π
Elsevier Science
π
English
β 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