Since Feldstein (1999), the most widely used method of calculating the excess burden of income taxation is to estimate the e¤ect of tax rates on reported taxable income. Feldstein’s taxable income formula for deadweight loss implicitly assumes that the marginal social cost of evasion and avoidance equals the tax rate. This paper argues that this condition is likely to be violated in practice fo...

inrtoduction developing countries and newly industrialized countries face the twin challenges of protecting the environment while also strengthening their economies. over the past few decades, the intensified process of urbanization and industrialization undertaken by these countries, coupled with rapid population growth, has resulted in the degradation of the environmental quality. particularl...