To determine the full effects of taxation on income distribution, policymakers need to consider the impacts of tax evasion. In the standard analysis of tax evasion, all the benefits are assumed to accrue to tax evaders. But tax evasion has other impacts that determine its true effects. As...

There are competing 'views' on the economic effects of debt finance. One view argues that tax and debt finance have identical effects on various economic measures, a view sometimes termed 'Ricardian Equivalence'. However, this 'Ricardian view' remains controversial, with other views (the...