This paper studies the problem of illegal behavior within a principal-agent framework. The agent performs an illegal activity which benefits the principal, and can exert an effort that negatively affects the likelihood of detection of the violation.Two opposite legal regimes are considered: in...

The Studi di Settore are used by the Italian tax administration to calculate reference revenue levels for small businesses. Recently new rules have been introduced in order to render the Studi di Settore more efficient in producing realistic estimates, with the aim of reducing the "legalized...

This paper provides a simple model, based on expected utility theory, for rationalizing taxpayer's reaction to an unexpected amnesty offer. The model is estimated through a deterministic approach, with reference to data pertaining to the 1991 and 1994 Italian tax amnesties. Results seem sound...

In this paper we model taxpayer participation in an unanticipated tax amnesty which can be entered by paying a fixed amount. Taxpayers are characterized by a Constant Relative Risk Aversion (CRRA) utility function and differ in relative risk aversion coefficient and in income. With minor changes...

Gatekeepers have an increasing role in taxation and regulation. Whereas burdening them with legal liability for misconducts that benefit those who resort to their services actually discourages wrongdoings—as will be clarified in the article—an alienation effect can also arise. The gatekeeper...

This paper examines the segregative properties of endogenous processes of jurisdiction formation à la Tiebout in the presence of a central government who makes equalization transfers to jurisdictions in such a way as to maximize a welfarist objective. Choice of location by...

In this paper we study the existence of bubbles for pricing equilibria in a pure Exchange Economy a' la Lucas, with infinitely lived homogeneous agents. The model is analyzed under fairly general assumptions: no restrictions either on the stochastic process governing dividends' distribution or...

This paper provides a step further in the computation of the transition path of a continuous time endogenous growth model discussed by Privileggi (2010) – based on the setting first introduced by Tsur and Zemel (2007) – in which knowledge evolves according to the Weitzman (1998)...

This paper constitutes a first attempt at studying the transition dynamics of the Tsur and Zemel (2007) continuous time endogenous growth framework in which knowledge evolves according to the Weitzman (1998) recombinant process. For a specific choice of the probability function characterizing...