Individuals (e.g., the self-employed and those earning casual wages such as tips) with income not reported to the tax authority by a third party may be less likely to be detected evading taxes relative to the case in which their income is subject to third-party reporting. However, their...

This paper examines the process by which firms are selected for a sales tax audit and the determinants of subsequent firm compliance behavior, focusing upon the Gross Receipts Tax in New Mexico. A two-stage selection model is used to estimate the State's audit selection rule and, conditional...

The central government of Colombia imposes a variety of taxes on the wages of workers. Some of these taxes are more properly viewed as "contributions" because individuals are entitled to benefits, the size of which varies with their contributions. Some may also be seen as a way to force people...

Individuals whose income is not reported to the tax authority by a third party (e.g., the self-employed and those earning casual wages such as tips) may be less likely to be detected evading taxes relative to the case in which they are subject to third-party reporting. However, the compliance...

This paper uses laboratory experiments to investigate compliance behavior when returns are selected for audit based upon the deviation of each individual's tax report from the average report of all other taxpayers. Our experimental results indicate that individuals find it difficult to...

How do exogenous increases in resources to a government affect its expenditure decisions? Economic theory typically predicts that a lump-sum grant will have the same impact on government expenditures as an increase in income. However, empirical studies consistently find that government spending...