announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R …We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The … social welfare than the announcement of the tax rate or the standard emission taxation if the marginal damage of emissions …

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