%0 Journal Article
%T Multiplier¨CAccelerator Interaction in the Presence of an Underground Economy and Taxation
%A Gerasimos T. Soldatos
%J Margin: The Journal of Applied Economic Research
%@ 0973-8029
%D 2018
%R 10.1177/0973801018757235
%X This article introduces the underground economy into a standard multiplier-accelerator model with linear progressive income taxation. The main results are that this introduction increases the instability of the overall economy towards chaos, that tax policy plays a critical role in preserving stability even if in the sense of a uniform cycle and that the operation of the accelerator may be countering the negative effect of tax evasion on tax revenue. JEL Classification:O17, E32, H2
%K Multiplier-accelerator
%K Underground economy
%K Taxation
%K Stabilisation
%U https://journals.sagepub.com/doi/full/10.1177/0973801018757235