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A tax evasion experiment revisited

Author

Listed:
  • Jonas Andersson

    (Norwegian School of Economics and NoCeT)

Abstract

In this paper the experimental data collected by Masclet, Montmarquette and Viennot-Briot (2019a) is revisited in order to study some aspects of the drivers of the declaration rate, not studied in the authors' article. By using a zero-one inflated beta regression model, a more detailed analysis of the special values, zero declaration and full declaration, is enabled. It turns out that some of the drivers of the declaration rate is affecting the three parts of the declaration rate distribution, the zero declarers, the full declarers and the intermediate declarers, differently. It is found that the effect of tax payers' monitoring, i.e., their knowledge about other tax payers' evasion, increases the probability to declare zero. Among the individuals declaring a part of their income, the effect is significantly positive; they declare more. Another result is that, for the average experiment participant, both the probability to fully declare or declare nothing of the income is increasing as the experiment progresses.

Suggested Citation

  • Jonas Andersson, 2024. "A tax evasion experiment revisited," Economics Bulletin, AccessEcon, vol. 44(3), pages 1010-1017.
    • Handle: RePEc:ebl:ecbull:eb-24-00095
    as

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    References listed on IDEAS

    as
    1. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    2. James Alm, 2012. "Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 54-77, February.
    3. R. A. Rigby & D. M. Stasinopoulos, 2005. "Generalized additive models for location, scale and shape," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 54(3), pages 507-554, June.
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    More about this item

    Keywords

    Tax evasion; Zero-one inflated beta regression; experimental data;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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