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 …

associated pension fund. A stochastic Excel model was developed to simulate the effect of varying investment returns on a pension … company stocks and long-term government bonds. A third lognormal distribution was designed to represent the investment returns …