APPLICATIONS OF BEHAVIOURAL ECONOMICS TO TAX EVASION

By Nigar Hashimzade, G. Myles, B. Tran-Nam. 2012

195 citations recorded by the source corpus.

The paper reviews recent models that have applied the techniques of behavioural economics to the analysis of the tax compliance choice of an individual taxpayer. The construction of these models is motivated by the failure of the Yitzhaki version of the Allingham–Sandmo model to predict correctly the proportion of taxpayers who will evade and the effect of an increase in the tax rate upon the chosen level of evasion. Recent approaches have applied non-expected utility theory to the compliance decision and have addressed social interaction. The models we describe are able to match the observed extent of evasion and correctly predict the tax effect but do not have the parsimony or precision of the Yitzhaki model.

Subfields: Economics and Econometrics, Gender Studies

View Paper: https://www.semanticscholar.org/paper/1dbde621a2c99bcb0c1d3ca72c93553349c4d86c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. L. Castro
2. Fany Inasius
3. Carlos Scartascini

In Gender Studies

1. L. Castro
2. Fany Inasius
3. Carlos Scartascini

Citations in the corpus

• Tax Compliance and Enforcement in the Pampas: Evidence from a Field Experiment (2013, background): “For comprehensive overviews, see Traxler (2010) and Hashimzade, Myles, and Tran-Nam (2012), among others. that captures the moral cost of tax evasion.8 In this formulation, the “moral” cost depends on how much each individual internalizes the social cost [θi], which may depend on how much each…”
• Factors Influencing SME Tax Compliance: Evidence from Indonesia (2019, result): “This is in line with Hashimzade et al. (2012), which states that tax compliance will increase when the tax rate rises.”
• From the Lab to the Field: A Review of Tax Experiments (2016, unknown): “A detailed discussion of recent theoretical models of tax compliance is available in the review article by Hashimzade et al. (2013).”