Doerrenberg, Philipp; Duncan, Denvil - Cologne Graduate School in Management, Economics and … - 2012
We examine the extent to which labor supply elasticities with respect to tax rates depend on access to evasion … opportunities, e.g. due to being subject to third-party-reporting. We first set up a theoretical model to formally show that labor … supply responses depend on access to evasion. The model is then tested in a lab experiment in which all participants …