This contribution surveys theoretical analyses of tax evasion by firms. It uses a simple model in which the firm determines economic activity and the under-declaration of the tax base to integrate various approaches into a coherent analytical framework. Initially, the chapter characterises the...

The so-called excess-entry theorem (Mankiw and Whinston 1986, Suzumura and Kiyono, 1987) establishes conditions guaranteeing that more firms enter a homogeneous Cournotoligopoly in equilibrium than a benevolent government prefers. We generalise the approach and analyse the behaviour of a...

Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...

Traditionally, it has been argued that profit sharing can increase employment and welfare because it lowers marginal labour costs without reducing total cost or labour income. In this paper, we show that profit sharing can also represent a Pareto-improvement if labour supply is excessive due to...