SMEs and entrepreneurs are of critical importance for reaching climate objectives. They have a significant environmental footprint on aggregate, but also make important contributions to reaching net zero through their innovations and greening efforts. This paper discusses the importance of...

There is only limited evidence of how small firms respond to size-based regulations applied in various countries. We study this question by examining the value-added tax (VAT) threshold in Finland. We find sizable bunching of firms in the sales distribution just below the exemption threshold,...

There is only limited evidence of how small firms respond to size-based regulations applied in various countries. We study this question by examining the value-added tax (VAT) threshold in Finland. We find sizable bunching of firms in the sales distribution just below the exemption threshold,...

Various types of size-based regulations for firms are typical in most countries (tax schedules, accounting rules, health and safety standards etc.). However, there is only limited evidence of how owners of small firms respond to such rules, and what are the underlying mechanisms behind the...

Corporate tax reforms carried out in EU countries since 1980 entail lower statutory tax rates and reductions in generous tax depreciation provisions. Several countries, including the UK, have reduced tax rates for small and medium-sized enterprises (SMEs). This study compares incentive effects...

There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment since the evidence is based mainly on the behaviour of large listed companies. This paper utilises a large register-based panel data set, where the vast majority of firms are...

In this paper we study the effects of various tax schedule discontinuities on the behavior of small firms using high-quality and population-wide tax register data from South Africa. We use the bunching method to analyse how these discontinuities affect the firm-size distribution. We first...

This paper assesses the public guarantee scheme for small businesses approved in Italy during the Covid-19 pandemic. In April 2020 the Italian government introduced a free 100% government guarantee on loans below €25.000 that requires no credit approval by banks. Using loan-level data from the...

This paper examines the compliance pattern of small businesses, using pooled 1985 and 1988 Taxpayer Compliance Measurement Program (TCMP) data. Specifically, we focus on the voluntary reporting compliance of income from proprietorship, farm, and rental real estate activities. We find that...

Using a data set that records banks' ongoing requests of information from small commercial borrowers, we examine when banks use financial statements to monitor borrowers after loan origination. We find that banks request financial statements for half the loans and this variation is related to...