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Study on labour supply when tax evasion is an option with Box-Cox functional forms and random parameters.

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Razzolini, Tiziano

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Abstract Labour supply when tax evasion is an option is analysed within a discrete choice framework which incorporates random parameters and Box-Cox functional forms, using mixed logit models. Deviates in parameters and, in some cases, correlation between alternatives in the evasion group are found to be significant. The models utilized yield good predictions in terms of labour supply and taxes paid by non- evaders. The goodness of fit and quality of prediction is improved by the introduction of correlation between random coefficients.
Classification National Economy; Economic Statistics, Econometrics, Business Informatics
Document language English
Publication Year 2009
Page/Pages p. 3669-3684
Journal Applied Economics, 42 (2009) 28
ISSN 1466-4283
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)