Independent Auditors as Fiscal Gatekeepers
Luigi A. Franzoni
University of Bologna - Faculty of Economics
This paper develops a framework for the analysis of gatekeeping in tax enforcement, whereby independent auditors are assigned the duty of certifying taxpayers' reports. The equilibrium of the market for gatekeepers' services is characterized, as well as taxpayers' and auditors' optimal behavior. The paper discusses the optimal structure of the gatekeeping regime and determines the conditions under which it is socially preferable to direct public enforcement.
Number of Pages in PDF File: 28
JEL Classification: H29working papers series
Date posted: February 6, 1997
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