The Effects of Uncertain Tax Policies on the Behaviour of Firms

  • Riccardo Martina
Chapter
Part of the Financial and Monetary Policy Studies book series (FMPS, volume 25)

Abstract

Several analysis of the effects of recent tax reforms on the economic systems have stressed two major aspects related to the structure and to the recent development of tax systems; the growing complexity of the tax laws and the high frequency of tax changes2. The relevance of these phenomena in the past decade3 has induced a number of economists to challenge the plausibility of the traditional view according to which the structure of the tax system should be considered as given and perfectly known to economic agents.

Keywords

Absolute Risk Aversion Output Decision Competitive Firm Constant Absolute Risk Aversion Comparative Static Effect 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. J. Alm, (1988). Uncertain tax policies, individual behavior, and welfare, American Economic Review, vol. 78, pp. 237–245.Google Scholar
  2. P.J. Beck, O.W. Jung, (1989). Taxpayer compliance under uncertainty, Journal of Accounting and Public Policy, vol. 8, pp. 1–27.CrossRefGoogle Scholar
  3. F.R. Chang, D.E. Wildasin, (1987). Randomization of commodity taxes: an expenditure minimization approach, Journal of Public Economics, vol. 31, pp. 329–346.CrossRefGoogle Scholar
  4. V. Dardanoni, M.Marrelli, (1988). Tax evasion and intensity of auditing, Rivista di Scienza delle Finanze e Diritto Finanziario, n. 2, pp. 165–172.Google Scholar
  5. A.K. Dixit, (1986). Comparative statics for oligopoly, International Economic Review, vol. 27, pp. 107–122.CrossRefGoogle Scholar
  6. J.D. Hey, (1979). Uncertainty in Microeconomics, Martin Robertson, Oxford. J.D. Hey, (1981). Economics in Disequilibrium, Martin Robertson, Oxford.Google Scholar
  7. I. Horowitz, (1987). Regression estimated market demand and quasi-Cournot behaviour, International Journal of Industrial Organization, vol. 5, pp. 247–253.CrossRefGoogle Scholar
  8. Y. Ishii, (1977). On the theory of the competitive firm under uncertainty: a note, American Economic Review, vol. 67, pp. 768–769.Google Scholar
  9. D. Levin, (1985). Taxation within Coumot oligopoly, Journal of Public Economics, vol.27, pp. 2 81–290.Google Scholar
  10. M. Marrelli, (1985). On indirect tax evasion, Journal of Public Economics, vol. 25, pp. 181–196.CrossRefGoogle Scholar
  11. M. Marrelli, R. Martina, (1988). Tax evasion and strategic behaviour of the firms, Journal of Public Economics, vol. 37, p. 55–69.Google Scholar
  12. R. Martina, (1989). A duopoly model with risk-averse firms, Studi Economici, n. 38, pp. 3–23.Google Scholar
  13. B.C.P. Rayner, L.Stallmann, (1988). Well! Look who paid no ‘87 taxes to uncle Sam, Electronic Business, 1 october, pp. 62–71.Google Scholar
  14. M. Rothschild, J. Stiglitz, (1970). Increasing risk: I. A definition, Journal of Economic Theory, vol. 2, pp. 225–243.CrossRefGoogle Scholar
  15. A. Sandmo, (1971). On the theory of the competitive firm under uncertainty, American Economic Review, vol. 61, pp. 65–73.Google Scholar
  16. S. Scotchmer, J. Slemrod, (1989). Randomness in tax enforcement, Journal of Public Economics, vol. 38, pp. 17–32.CrossRefGoogle Scholar
  17. J. Seade, (1980). The stability of Cournot revisited, Journal of Economic Theory, vol. 23, pp. 15–27.CrossRefGoogle Scholar
  18. J. Skinner, (1988). The welfare cost of uncertain tax policy, Journal of Public Economics, vol. 37, pp. 129–145.CrossRefGoogle Scholar
  19. J.E. Stiglitz, (1982). Utilitarianism and horizontal equity: the case for random taxation, Journal of Public Economics, vol. 18, pp. 1–33.CrossRefGoogle Scholar
  20. L. Weiss, (1976). The desirability of cheating incentive and randomness in the optimal income tax, Journal of Political Economy, vol. 84, pp. 1343–1352.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 1993

Authors and Affiliations

  • Riccardo Martina
    • 1
  1. 1.Università di NapoliItaly

Personalised recommendations