We relate tax evasion behavior to a substantial literature on self and social comparison in judgements. Tax payers … engage in tax evasion as a means to boost their expected consumption relative to others in their “local” social network, and … relative to past consumption. The unique Nash equilibrium of the model relates optimal evasion to a (Bonacich) measure of …

-taxed lower-priced product. The distributional implications of such joint tax evasion depend on the amounts evaded, on where the … suppliers and demanders. We use various data sources to identify tax evasion among sellers and buyers of goods and services …. Results clearly suggest that the tax-evasion-controlled estimate of income inequality in Norway exhibits more income …

This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine … option. We show that payment evasion leads to a form of second-degree price discrimination in which the purchase price … exceeds the expected fine faced by payment evaders. We also show that higher fines do not necessarily reduce payment evasion …

bureaucrats. It is shown that the existence of tax evasion does not affect corruption activities at the firm level, while the … budgetary repercussions of tax evasion induce less corruption. Policy measures which alter the gains or losses from corruption … have a non-systematic impact on tax evasion behaviour …

positive correlation between tax evasion and educational investments in period two, whereas the relationship in period one is … evasion …

Many countries apply lower fines to tax evading individuals when they voluntarily disclose the tax evasion they … tax evasion decision, using the introduction of the 2009 offshore voluntary disclosure program in the U.S. for … identification. The analysis confirms that the introduction of voluntary disclosure increases tax evasion …

If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive … the excessive entry prediction. Tax evasion raises the number of firms in market equilibrium and can alter their welfare …-maximizing number. In consequence, evasion can aggravate or mitigate excessive entry. Which of these outcomes prevails is determined by …

, the tax base. A higher taxable income, in turn, can make tax evasion more attractive. We show for various specifications … tax evasion. This is true, irrespective of whether tax parameters are exogenous, guarantee a balanced budget or are set …

This paper examines the role of tax evasion in explaining the business cycle in a DSGE model with a financial … the credit channel via the financial accelerator mechanism. The results show that tax evasion is pro cyclical and … strengthens the effects of the financial accelerator. Unlike the standard literature, in which tax evasion cushions business cycle …