| ID | 159350 |
| Title Proper | Multiplier–accelerator interaction in the presence of an underground economy and taxation |
| Language | ENG |
| Author | Soldates, G T |
| Summary / Abstract (Note) | This article introduces the underground economy into a standard multiplier-accelerator model with linear progressive income taxation. The main results are that this introduction increases the instability of the overall economy towards chaos, that tax policy plays a critical role in preserving stability even if in the sense of a uniform cycle and that the operation of the accelerator may be countering the negative effect of tax evasion on tax revenue. |
| `In' analytical Note | Margin Vol. 12, No.2; May 2018: p.244-256 |
| Journal Source | Margin 2018-05 12, 2 |
| Key Words | Taxation ; Underground Economy ; Stabilisation ; Multiplier-Accelerator |