The question of why firms and managers engage in corruption and related unethical behaviors has attracted significant academic attention with several authors pointing to the importance of social norms and expectations. In this paper, we ask if “legitimate” administrative costs are less of a...

We designed a public good laboratory experiment in order to identify the causal relationships between tax evasion and corruption and query whether deterring one of these behaviors may have desirable spillover effects on the other. To do so, we analyse the effects of deterrence when the target is...