Taxes versus informality: an analysis using the DSGE model

Authors

  • Thiago Geovane Pereira Gomes Economista, doutor em Economia pela Universidade Federal da Paraíba (UFPB), membro de projetos de pesquisa e professor adjunto III da Universidade do Estado do Rio Grande do Norte (UERN), Campus Avançado de Pau dos Ferros, BR 405, Km 153, Bairro Arizona, CEP 59900-000, Pau dos Ferros, RN.
  • José Alderir da Silva Alderir Economista, doutor em Economia pela Universidade Federal da Paraíba (UFPB), professor na Universidade Federal Rural do Semi-Árido (Ufersa), Campus Angicos, Rua Gamaliel Martins Bezerra, 587, Alto da Alegria, CEP 59515-000, Angicos, RN.
  • Francisco Danilo da Silva Ferreira Economista, doutor em Economia pela Universidade Federal da Paraíba (UFPB), professor pela Universidade do Estado do Rio Grande do Norte (UERN), Campus Avançado de Assú, Rua Sinhazinha Wanderley, 871, Centro, CEP 59650-000, Açu, RN.

DOI:

https://doi.org/10.35977/0104-1096.cct2024.v41.27344

Keywords:

inspection, taxes

Abstract

This article aims to assess the effects of taxes and inspection on the Brazilian informal sector. A strategy was used for the analysis of transmission channels through a twosector DSGE model that allows the construction of scenarios with the reduction and simplification of taxes, as well as the reduction of inspection of informal firms. The formal product grew in all scenarios of tax rate reduction and, consequently, the aggregate product showed the same behavior. It is worth mentioning the drop in tax collection, up to the fifth period, after the reduction in inspection of the informal sector. And demand for informal work fell after the fall in the rate of taxes on labor and wages.

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Published

2024-07-04

How to Cite

Gomes, T. G. P., Alderir, J. A. da S., & Ferreira, F. D. da S. (2024). Taxes versus informality: an analysis using the DSGE model. Science & Technology Journals, 41, e27344. https://doi.org/10.35977/0104-1096.cct2024.v41.27344

Issue

V.41, Jan./Dec., 2024

Section

Artigos

License

After publication of the work, the Authors are authorized to non-exclusively distribute the version of the published work (for example: publish in an institutional repository, as a book chapter, create links on electronic pages, etc.), as long as the authorship and initial publication in this journal are mentioned.