If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive … the excessive entry prediction. Tax evasion raises the number of firms in market equilibrium and can alter their welfare …-maximizing number. In consequence, evasion can aggravate or mitigate excessive entry. Which of these outcomes prevails is determined by …

If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive … the excessive entry prediction. Tax evasion raises the number of firms in market equilibrium and can alter their … welfaremaximizing number. In consequence, evasion can aggravate or mitigate excessive entry. Which of these outcomes prevails is …

This paper provides a general equilibrium model of income tax evasion. As functions of the share of income reported … increase in magnitude by more than with zero evasion. Keeping constant the ratio of income tax revenue to output, as shown to … be consistent with certain US evidence, a rising productivity of the goods sector induces less evasion and thereby allows …