I'm trying to come up with a simplified model of investment/spending in the market and the underground market as income and sales taxes shift.
Obviously there are going to be a stupendous number of simplifying assumptions. The basic model I have so far is a follows:
0) Given income = i, money m = i
1) Decide how much to launder = l
2) Pay laundry fee = f(l), m <- m - f
3) Pay income tax = it(m - l), m <- m - it
4) Determine if busted by the IRS and pay penalty = ib(l), m <- m - ib
5) Decide how much of m to use 'under the table' = u
6) Pay sales tax st(m - u), m <- m - st
7) Determine if busted and pay penalty = sb(u), m <- m - sb
8) Pass m to fitness function
A 'game' to model taxation & black market economics
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A 'game' to model taxation & black market economics
Last edited by CatharzGodfoot on Thu Apr 17, 2008 7:27 pm, edited 1 time in total.