Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18896 
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dc.contributor.authorKanniainen, Vesaen
dc.contributor.authorPääkkönen, Jennien
dc.date.accessioned2009-01-28T15:53:38Z-
dc.date.available2009-01-28T15:53:38Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/18896-
dc.description.abstractSome markets are prone to develop shadow transactions for the purpose of tax avoidance.Moral sentiments control the allocation of consumers between the legal and illicit markets.Such sentiments include self-esteem and social disapproval. The market solution leads tofiscal externality resulting from tax avoidance and highlights the conflict between privateopportunism and collective values. Shadow markets may, however, enhance consumerwelfare by limiting the pricing power of firms and by controlling tax collection. The paperdevelops a model of endogenous segmentation of markets between moral and immoralbehavior. The legal producer can price the self-esteem of honest people, who can blackmailthe legal producer with their option of visiting the illicit market. The model has implicationsfor monetary economics: moral sentiments, tax rates, illegal transactions, and probability ofbeing caught become relevant for the demand for money.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x1258en
dc.subject.jelD43en
dc.subject.jelL13en
dc.subject.jelH26en
dc.subject.jelE41en
dc.subject.jelD69en
dc.subject.ddc330en
dc.subject.keywordmoral sentimentsen
dc.subject.keywordshadow economyen
dc.subject.keywordwelfareen
dc.subject.stwEthiken
dc.subject.stwSchattenwirtschaften
dc.subject.stwWohlfahrtseffekten
dc.titleAnonymous money, moral sentiments and welfare-
dc.typeWorking Paperen
dc.identifier.ppn856874574en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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