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Optimal income tax enforcement in the presence of tax avoidance

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Figure

Figure 1(a): Audit function for A*� (0, w* – x].
Figure 2(a): Audit function for w*� (x + A*w�,  ].
Figure 3a: Effect of a multiplicative shift in the tax function on the expected marginal return to avoidance and evasion – risk neutral case
Figure 4: Audit function for a progressive, linear, and regressive tax function.
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