We document the existence of Chinese imitation of foreign firms on a large scale. China's export processing zones (EPZs) attract foreign companies to set up export processing operations. Chinese firms quickly imitate these companies in both export and import patterns. Exports of the products...

This paper introduces a new argument to the debate about the role of environmental taxes in modern tax systems. Some environmental taxes, particularly taxes on gasoline or electricity, are more difficult to evade than taxes on labor or income. When the tax base is shifted in a revenue-neutral...

This paper examines the implications of a “tax evasion effect” when revenues from an environmental tax are used to reduce other taxes. Tax evasion is modeled as a costly and unproductive firm activity. When the tax base is shifted in a revenue-neutral manner toward environmental taxes, the...