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Are Underground Workers More Likely to be Undreground Consumers ?
Oleh:
Fortin, Bernard
;
Lacroix, Guy
;
Montmarquette, Claude
Jenis:
Article from Journal - ilmiah internasional
Dalam koleksi:
The Economic Journal (EBSCO) vol. 110 no. 466 (2000)
,
page 838-860.
Topik:
CONSUMERS
;
underground workers
;
consumers
Fulltext:
838.pdf
(237.86KB)
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
EE28.2
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
We investigate the impact of working in the underground sector on the demand for underground commodities. Using a tax evasion model with costly information, we show that the presence of a network effect encourages underground workers to purchase underground commodities. The model is estimated using a unique Canadian microdata set for 1993. An increase in underground hours of work has a strong positive effect on the probability of purchasing underground commodities and on the level of expenditures. This relationship has a sizable effect on the impact of tax and enforcement parameters on the level of the underground economy.
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