efficiency argument for expansion — often dubbed “fiscal illusion” — is based on a surprising mistake. Without compensation, the … argument goes, governments operate under a fiscal illusion, because from their perspectives, their actions are costless. The … words, does not correct fiscal illusion. It creates it. Revealing the illusion of fiscal illusion leaves standing much older …

application to takings under fiscal illusion, however, is problematic. A better model would assume that the government decides to …

This paper presents an empirical analysis of the relationship between fiscal illusion and the shadow economy for 104 … of a fiscal illusion may be helpful if governments want to control shadow economic activities. Using a MIMIC model with … determinants and indicators of fiscal illusion. Most importantly, we find that fiscal illusion negatively affects the shadow …