Taxation with Costly Administration

Abstract

The concept of a tax technology is used here as providing a unified framework for analyzing both administrative activity by tax authorities and tax-resisting activity by taxpayers. This framework provides a simple formalization of Adam Smith's four components of tax costs: administration, substitution, active noncompliance, and passive compliance. The model is used to derive policy implications concerning the proper measurement of the cost of public funds and concerning the criterion for optimal administration.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 168 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.