transmission of bank distress to the real economy - in particular, to real investment and labor employment by nonfinancial firms … supply downsize their real investment and labor employment significantly. This effect is larger for firms that are unable to …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of …