The standard margin is to substitute more (untaxed) leisure to evade the labor income tax via (5).
However, this tax also stimulates labor market activity in the untaxed informal sector via equation (6).
Roughly speaking, the informal sector is the untaxed and unregulated market sometimes referred to as the underground economy.
There is no externality and so private capital income should be untaxed.
The economy specializes in the goods cheaper to produce and induces a sharp increase in the untaxed types of pollution.
Roughly speaking, the informal sector is the untaxed and unregulated sector sometimes referred to as the underground economy.
Obviously, married women living in an untaxed household cannot have had their tax burden reduced after the husband's death, but only unchanged or increased.
The new margin is to substitute untaxed informal labor for taxed formal labor via (6).
