Profit Tax Evasion under Oligopoly with Endogenous Market Structure
This note investigates the impact of profit tax evasion on firms' output decisions in a Cournot oligopoly setting in which the market structure is determined endogenously. It is shown that tax evasion intensifies market entry and raises aggregate output, while production of each incumbent firm decreases. Therefore, tax evasion choices affect activity decisions and an evadable profit tax distorts the market outcome.
Year of publication: |
2006
|
---|---|
Authors: | Goerke, Laszlo ; Runkel, Marco |
Published in: |
National Tax Journal. - National Tax Association - NTA. - Vol. 59.2006, 4, p. 851-57
|
Publisher: |
National Tax Association - NTA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Goerke, Laszlo, (2007)
-
Profit tax evasion under oligopoly with endogenous market structure
Goerke, Laszlo, (2006)
-
Goerke, Laszlo, (2007)
- More ...