Profit Tax Evasion Under Oligopoly With Endogenous Market Structure

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Goerke, Laszlo; Runkel, Marco;
  • Journal: National Tax Journal, volume 59, issue 4 December, pages 851-57
  • Subject:
    mesheuropmc: health care economics and organizations

This note investigates the impact of profit tax evasion on firms' output decisions in a Cournot oligopoly setting in which the market structure is determined endogenously. It is shown that tax evasion intensifies market entry and raises aggregate output, while productio... View more
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