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Slemrod, Joel, and C. Traxler. 2010. "Optimal observability in a linear income tax." Economics Letters, 108(2): 105-108.
We study the optimal observability of the tax base within the standard linear income tax problem, where observability is determined by the government's investment into the accurate measurement of the tax base. (C) 2010 Elsevier B.V. All rights reserved.