We study experimentally how taxpayers choose between two taxregimes to fund a public good. The first-best tax regime imposes ageneral, distortion-free income tax. However, this tax cannot be enforced.The second-best alternative supplements the income tax by a specificcommodity tax. This tax...

We present an experimental study on the wasted resources associated with tax evasion. The waste arises from taxpayers and tax authorities, investing costly effort in concealment, respectively detect ion, of tax evasion. We show that (socially ineffcient) efforts depend positively on the...

In an overlapping generations-experiment with multiple families participants caneither support their parents directly and thereby reduce their tax burden or hopefor tax-financed old age support. State productivity is captured by the factor withwhich total tax revenues are multiplied to determine...

The main purpose of this paper is to estimate the size and the growth of Quebec’sunderground economy, and the corresponding loss of taxes for the government. Ourapproach is based on a method developed by Pissarides and Weber (1989) and extended byLyssiotou et al. (2004). The basic hypothesis...

This paper analyses the effects of innovation networks on product and pro-cess innovation and sales growth of high technology SMEs. Innovation net-works are positively related to both product and process innovation, i.e. know-ledge creation. One exception is the negative effect of innovation...

We consider a modi¯ed pure public good game characterized by a pre-play negotiation stage, onwhich pairs of players can form binding cooperation commitments. As the introduced mecha-nism only supports pairwise rather than more inclusive commitments, it does not implement thee±cient outcome. We...

Many social networks have the following properties: (i) a short average distancebetween any two individuals; (ii) a high clustering coe±cient; (iii) segregation pat-terns; the presence of (iv) brokers and (v) hubs. (i) and (ii) de¯ne a small worldnetwork. This paper develops a strategic...

This paper analyses the process of knowledge growth in a branch of medical science. Our study of scientific advances in glaucoma research is organized in two parts. In the first we present a qualitative overview of the problem sequences that have characterized 150 years of medical research in...