, and how much is caused by tax avoidance and tax evasion. This distinction is important because it affects the welfare … implications and policy recommendations. In this paper we distinguish between real responses and tax-motivated income …-shifting between tax bases. We show how the explicit inclusion of income-shifting affects the welfare analysis of income taxation. In …

This paper studies the effect of Finnish tax reforms in the mid 1990s on the economic activity and tax avoidance … decisions of the owners of small businesses. The reforms reduced income tax rates and increased tax planning incentives for … results imply that entrepreneurs react to tax incentives along both real and avoidance margins, while the latter elasticity is …

This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax …