We study the effects of the tax burden on tax evasion both theoretically and experimentally. We develop a theoretical framework of tax evasion decisions that is based on two behavioral assumptions: (1) taxpayers are endowed with reference dependent preferences that are subject to hedonic...

Questionnaires eliciting the absolutist vs relativist perception of poverty are administered to 1941 undergraduate students in eight countries - Bolivia, Brazil, Italy, Kenya, Laos, Sweden, Switzerland and the UK. We find that the perception of poverty expressed by a large fraction of...