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Using a Cournot oligopoly model with an endogenous number of firms and evasion of indirect taxes, this paper shows that more intense competition may have the negative side-effect of eroding tax revenues by increasing tax evasion. This will be the case if market entry costs decrease. A similar...
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experiment based on Grundmann and Lambsdorff (2017). Subjects earn income and report a tax rate, which they determine by rolling …
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to voluntary registration. The predictions are exactly the opposite for bunching. We test the theory using linked VAT and …
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