演講者簡介 : Professor Jung received his Ph.D. in Economics from Penn State University in 2007. He is currently an Assistant Research Fellow at Institute of Economics, Academia Sinica. His primary research fields are Microeconomic Theory, Game Theory, Industrial Organization; Secondary is Political Economy.
演講摘要 : Tax enforcement not only detects tax evasion (the direct effect) but also enforces voluntary compliance (the indirect effect). This paper explores implications of the indirect effect for the optimal size of the budget allocated to the IRS (Internal Revenue Service). The conventional wisdom prescribes that the size of the budget allocated to the IRS should always fall short of the level where an additional dollar allocated would return just an additional dollar of revenue. We show that, after taking into consideration the indirect effect of tax enforcement, it is possible that the optimal prescription is opposite to the conventional wisdom.
