The Underground Economy in the Late 1990s: Evading Taxes, or Evading Competition?

This paper studies the driving forces behind the considerable expansion of the underground economy during the late 1990s. I propose a novel explanation for this phenomenon: the sharp increase in market competition worldwide, which reduces prices and profits and drives firms into the shadow economy. Empirical evidence from a panel covering 42 countries from 1995 to 2000 shows that increased competition is indeed correlated with an expansion of the underground economy. The effect is weaker in high-income, high-tax, low-corruption countries that provide public services which make it worthwhile for firms to operate in the official economy despite growing competitive pressure.

How Demand Information Can Destabilize a Cartel

This paper studies a symmetric Bertrand duopoly with imperfect mon- itoring where rms receive noisy public signals about the state of demand. These signals have two opposite eects on the incentive to collude: avoid- ing punishment after a low-demand period increases collusive prots, mak- ing collusion more attractive, but it also softens the threat of punishment, which increases the temptation to undercut the rival. There are cases where the latter eect dominates, and so the collusive equilibrium does not always exist when it does absent demand information. These ndings are related to the Sugar Institute Case studied by Genesove and Mullin (2001).

Vertical Relations in the Presence of Competitive Recycling

We develop a model that incorporates salient features of growth in modern economies. We combine the expanding-variety growth model through horizontal innovations with a hierarchy of basic and applied research. The former extends the knowledge base, while the latter commercializes it. Two-way spillovers reinforce the productivity of research in each sector. We establish the existence of balanced growth paths. Along such paths the stock of ideas and the stock of commercialized blueprints for intermediate goods grow with the same rate. Basic research is a necessary and sufficient condition for economic growth. We show that there can be two different facets of growth in the economy. First, growth may be entirely shaped by investments in basic research if applied research operates at the knowledge frontier. Second, long-run growth may be shaped by both basic and applied research and growth can be further stimulated by research subsidies. We illustrate different types of growth processes by examples and polar cases when only upward or downward spillovers between basic and applied research are present.

Main clause external constituents and the derivation of subject-initial verb Second

This paper discusses V3-patterns with a sentence-initial adverbial clause in Standard Dutch (StD) and West-Flemish (WF), which appear to violate the V2 restriction which normally regulates word order in these languages. V3-patterns occur in both languages; they can be interpreted as complying with the V2 constraint provided they are analyzed as the result of merging a regular root clause with V2 order with an extra-sentential adverbial clause. The paper shows that the distribution of V3-patterns is slightly wider in WF than in StD: StD requires that the root clause which combines with the extra-sentential constituent either exhibits subject-verb inversion (XP-V-S) or, in the case of subject initial V2 clauses, that the subject has a distinguished information-structural status such as contrastive focus/topic; WF allows V3-structures more freely, regardless of whether they display subject-verb inversion and regardless of the informational-structural status of the subject. The analysis takes as its point of departure the earlier claim that V2-languages can be symmetric in the sense that the finite verb always leaves the TP domain and occupies the highest head position in the root clause, the complementizer position C in the traditional generative analysis, or asymmetric in the sense that the position of the finite verb varies in that it occupies the C-position when the root clause exhibits subject-verb inversion or a lower TP internal tense position (T) in root clauses without inversion. The hypothesis is that V3-patterns with a sentence-initial adverbial clause are only possible if the initial adverbial clause attains a local relation with the finite verb, and that this requires the finite verb to be in the (higher) C-position. By assuming that StD is an asymmetric V2-language while WF is a symmetric V2-language the variation with respect to the distribution of V3-patterns in these languages can be captured

Negative concord and (multiple) agree: a case study of West Flemish

This paper examines the formalization of negative concord in terms of the Minimalist Program, focusing entirely on negative concord in West Flemish. It is shown that a recent analysis of negative concord which advocates Multiple Agree is empirically inadequate. Instead of Multiple Agree, it is argued that a particular implementation of the simpler and less powerful binary Agree is superior in deriving the data in questio

VP-Ellipsis is not licensed by VP-Topicalization

Starting from the observation that the constraints on VP-ellipsis (VPE) closely match those on VP-topicalization (VPT), Johnson (2001) proposes a movement account for VPE: in order for a VP to be deleted, it must first undergo topicalization. We show that although this proposal is attractive, making VPE dependent on VPT is problematic because VPE and VPT are not distributionally equivalent. While VPT targets the left periphery and consequently is subject to constraints on movement, VPE is not so restricted. We outline some alternatives for capturing the observed parallelism in the licensing of VPT and VPE

Variation in English subject extraction : the case of hyperactive subjects

International audienceStarting from the well known observation that for some speakers of English, wh-subjects extracted across a transitive predicate can bear accusative case, we investigate the syntax of the pattern in which a subject is wh-moved across a passive predicate. For a minority of speakers, in this second pattern the moved wh-subject can trigger agreement with the predicate in the matrix clause, yielding an apparent case of finite raising which we will call wh-raising. In attempt to offer a unified account of these two structures, we suggest that both are possible in a grammar that allows for DPs to be 'hyperactive' (Carstens 2011) and to take part in A-operations (i.e. syntactic phenomena related to Case and agreement) in more than one clause. The analysis that we propose is couched in the cartographic framework, and adopts the approach to subject extraction from Rizzi (2006) and Rizzi & Shlonsky (2006, 2007)

Syntacticizing blends : the case of English wh-raising

This paper aims at analysing English structures in which a wh-moved subject triggers agreement both in the clause it is extracted from and in the immediately higher clause. This pattern is only accepted by some native speakers, and it is also attested in corpora. Although the relevant structures could at first sight be analysed as extragrammatical ‘blends’, we propose that they are in fact part of certain speakers’ linguistic competence, and hence generated by the grammar of those speakers. Adopting the approach to subject extraction developed in Rizzi & Shlonsky (2007), we suggest that extracted subjects can exceptionally be ‘hyperactive’ (Carstens 2011), and thus take part in A-relations (case and agreement) in more than one clausal domai