We focus on a relatively neglected area of the tax-compliance literature in economics, the behaviour of firms. We examine the impact of alternative audit rules on receipts from a tax on profits in the context of strategic interdependence of firms. In the market firms may compete in terms of...

Firms are usually better informed than tax authorities about market conditions and the potential profits of competitors. They may try to exploit this situation by under-reporting their own taxable profits. The tax authority could offset firms' informational advantage by adopting "smarter" audit...

There is considerable interest in the estimation of linear structural equation models (including path analysis) of the evolution across generations of the distribution of income, of socioeconomic achievement, and of related variables. Given insufficient data, the estimation of the models has...