Hebous, Shafik; Jia, Zhiyang; Løyland, Knut; Thoresen, … - 2020
The Norwegian Tax Administration operated multi-year random audits of personal income tax returns. We exploit this … exceptional randomized setup to estimate the effects of tax audits on future compliance explicitly distinguishing between dynamic …-audit deterrence effect-whereby audits prompt taxpayers to comply in subsequent years-or a "bombcrater" effect-whereby audits lower …