Template-Type: ReDIF-Paper 1.0 Author-Name: Silvia Platoni Author-X-Name-First: Silvia Author-X-Name-Last: Platoni Author-Email: silvia.platoni@unicatt.it Author-Workplace-Name: DISCE, Università Cattolica Author-Name: Francesco Timpano Author-X-Name-First: Francesco Author-X-Name-Last: Timpano Author-Email: francesco.timpano@unicatt.it Author-Workplace-Name: DISCE, Università Cattolica Title: Redistribution and Tax Evasion: an Asymmetric Information Approach Abstract: The article studies the optimal redistribution system, achieved by direct taxation, indirect taxation and public provision of the pseudo-necessary good, when individuals, who differ in productivity, can take hidden actions (tax evasion by moral hazard) and have hidden information (tax evasion by adverse selection). It proves that any Government willing to effectively reallocate resources among individuals has to undertake measures against tax evasion, i.e. to establish tax evasion fines. Length: 35 pages Creation-Date: 2013-07 Publication-Status: Published in Review of Economics, Month aaaa, pages nn1-nn2 File-URL: http://www.unicatt.it/dipartimenti/DISES/allegati/dises1394.pdf File-Format: Application/pdf File-Function: First version, 2013 Number: dises1394 Classification-JEL: H23; H42; H26; D82 Keywords: Redistribution; Tax Evasion; Asymmetric Information. Handle: RePEc:ctc:serie2:dises1394