Di Nola, Alessandro; Kocharkov, Georgi; Scholl, Almuth; … - 2018
income is substantial. This paper studies how tax evasion in the self-employment sector affects aggregate outcomes and … suggest that tax evasion induces self-employed businesses to stay small. In the aggregate, tax evasion increases the size but …. We show that tax revenues follow a Laffer curve in the size of the tax evasion penalty. …