Tax Evasion and Monopoly Output Decisions Revisited: Strategic Firm Behavior

Sang-Ho Lee ()

International Journal of Business and Economics, 2006, vol. 5, issue 1, 83-92

Abstract: This note reexamines the model of tax evasion of the monopolistic firm with profit taxes by incorporating the firm's strategic behavior for tax avoidance. It is shown that under certain conditions, the monopolist's decisions on output and expenditure are no longer separable from the evasion decision and there is a trade-off between production efficiency and cost efficiency. We then derive the optimal profit tax rate to investigate some properties of profit taxation.

Keywords: tax evasion; strategic expenditure; optimal profit taxation (search for similar items in EconPapers)
JEL-codes: D8 H26 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.05-1/pdf/vol_5-1-7.pdf (application/pdf)
https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.05-1/abstract/07.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijb:journl:v:5:y:2006:i:1:p:83-92

Access Statistics for this article

International Journal of Business and Economics is currently edited by Hsiang-Tsai Chiang (Editor-in-Chief), Chiung-Ju Huang (Editor-in-Chief), Feng-Jyh Lin (Associate Editor), Tzu-Ching Weng (Associate Editor), Hsin-Yi Huang (Managing Editor) and Szu-Hsien Ho (Managing Editor)

More articles in International Journal of Business and Economics from School of Management Development, Feng Chia University, Taichung, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Szu-Hsien Ho ().