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An Attempt to Control Tax Evasion

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  • Rosato, Antonio

Abstract

The main object of this paper is the study of tax evasion from a theoretical point of view. We construct a simple two-player model in order to analyze the interaction between the taxpayer and the IRS and the main tool we use is game theory. We derive equilibrium solutions for the static game and we also provide some interesting comparative statics results. Then, we develop a dynamic game over an infinite number of periods. We show and comment two different kinds of long-run equlibria.

Suggested Citation

  • Rosato, Antonio, 2006. "An Attempt to Control Tax Evasion," MPRA Paper 15084, University Library of Munich, Germany, revised 07 May 2009.
    • Handle: RePEc:pra:mprapa:15084
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    File URL: https://mpra.ub.uni-muenchen.de/15084/1/MPRA_paper_15084.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Tax Evasion; Policy; Game Theory;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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