Almunia, Miguel; López Rodríguez, David - 2014
Spain to empirically test the theoretical predictions on firms’ responses to an increase in monitoring effort. Firms with … period 1999-2007, we find substantial bunching of firms just below the LTU threshold. On average, we estimate that bunchers … reduce their reported revenue by €101,000 (1.7% of total revenue) to avoid falling in the high enforcement regime. Adjusting …