Harassment, corruption and tax policy: A comment on Marjit, Mukherjee and Mukherjee [Eur. J. Political Economy 16 (2000) 75–94] |
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Authors: | Florian Baumann |
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Institution: | aEberhard Karls-University Tübingen, Germany |
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Abstract: | Our comment on Marjit et al. Marjit, S., Mukherjee, V., Mukherjee, A., 2000. Harassment, corruption and tax policy. European Journal of Political Economy 16, 75–94.] addresses the equilibrium concept used in the game with imperfect information, Section 4 of the original paper. The solution represented in the original paper does not constitute a perfect Bayesian Nash-equilibrium. We develop an alternative solution of the game given the assumptions made by Marjit et al. Marjit, S., Mukherjee, V., Mukherjee, A., 2000. Harassment, corruption and tax policy. European Journal of Political Economy 16, 75–94.] and find that the results concerning the optimal amount of over-evaluation of income and the existence of a pooling or separating equilibrium are altered. |
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Keywords: | Corruption Harassment |
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