We use regression analysis to estimate the effect that campaign money had on the votes of challengers and incumbents in the 1993 elections to the French legislative assembly. Incumbent candidates can at best expect to win 1.01% of the popular vote for each extra franc they spend per registered...

In the presence of differing abilities to evade taxes, markets select producers for their evasive skills and their abilities to keep costs of production low. Inefficient firms crowd out efficient firms. If the least efficient firms are the best tax evaders, adverse selection is severe and output...

Tax Evasion and Firm Survival in Competitive Markets illustrates how a firm with high production costs but which is easily able to evade taxes may displace from the market a company with low production costs but poor tax evasion capabilities. The difference in production costs between the...