An example of strategic market game with infinitely many commodities

This short paper shows in an example of strategic market game that the CournotNash equilibrium converges to the Walras equilibrium, even in the case of an exchange economy with infinitely many commodities

String k-anomalies and D=10 Supergravity constraints: the solution of a puzzle

The $\kappa$--anomaly cancellation mechanism in the heterotic superstring determines the superspace constraints for N=1, D=10 Supergravity--Super--Yang--Mills theory. We point out that the constraints found recently in this way appear to disagree with superspace solutions found in the past. We solve this puzzle establishing perfect agreement between the two methods.Comment: 9 pages, Plain TeX, no figures, Abstract printed as last pag

Minimumwage and tax evasion: theory and evidence

This paper examines the interaction between minimum wage legislation and tax evasion by employed labor. I develop a model in which firms and workers may agree to report less than the true amount of earnings to the fiscalauthorities. I show that introducing a minimum wage creates a spike in the distribution of declared earnings and induces higher compliance by some agents, thus reducing their disposable income. The comparison of food consumption before and after the massive minimum wage hike that took place in Hungary in 2001 reveals that households who appear to benefit from it actually experienced a drop compared to similar but unaffected household, thus supporting the prediction of the theory.minimum wage, tax evasion, Hungary.

Minimum Wage and Tax Evasion: Theory and Evidence

The paper investigates the role of the minimum wage in a competi- tive economy in which there is underreporting of earnings by employed labour. The minimum wage induces higher compliance by some low- productivity workers and transforms a nominally neutral .scal system into a regressive one. A spike in the wage distribution at the mini- mum wage level appears and a positive correlation between the size of the spike and the size of the informal economy is predicted and documented using cross-country data for Europe. A further result is that employees whose officially declared earnings appear to be boosted by a minimum wage hike actually experience a decline in their true income. This prediction finds support in an empirical test using the massive increase in the minimum wage that took place in Hungary in 2001 as a quasi-natural experiment.Minimum Wage, Tax Evasion, Wage Distribution, Hungary

Import Tariffs Enforcement with Low Administrative Capacity

Import tariff receipts represent an important share of government revenues in many developing countries and there has recently been a surge in empirical studies showing how evasion in this field is a pervasive phenomenon. In the case of import tariffs, the tax base is the product of quantity and unit value, both of which have to be reported and need to be assessed by the custom authority during an audit. I show that when the fiscal authority has an imperfect detection technology, there is an additional incentive for the taxpayer to underdeclare, as a greater declaration in one dimension actually increases the fine when evasion in the other dimension is detected, and a tax base presenting this feature is subject to more evasion compared to a tax base that can be assessed directly. Also, when enforcement capacity is low, voluntary compliance is higher when the importer is required to declare only the total value of imports.tariff, tax evasion, multiplicative tax base, imperfect detection, low administrative capacity

World-manifold and target space anomalies in heterotic Green-Schwarz strings and five-branes

The quantum consistency of sigma-models describing the dynamics of extended objects in a curved background requires the cancellation of their world-volume anomalies, which are conformal anomalies for the heterotic string and $SO(1,5)$ Lorentz-anomalies for the heterotic five-brane, and of their ten dimensional target space anomalies. In determining these anomalies in a $D=10$ Lorentz-covariant back-ground gauge we find that for the heterotic string the worldvolume anomalies cancel for 32 heterotic fermions while for the conjectured heterotic five-brane they cancel for only 16 heterotic fermions, this result being in contrast with the string/five-brane duality conjecture. For what concerns the target space anomalies we find that the five-brane eight-form Lorentz-anomaly polynomial differs by a factor of $1/2$ from what is expected on the basis of duality. Possible implications of these results are discussed.Comment: 9 pages, no figures, talk given at the Conference "Gauge Theories, Applied Supersymmetry and Quantum Gravity", London, July 199