In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from...

Although collusive tax evasion by buyers and sellers of commodities and also by employers and employees is widespread all over the world, it has rarely been analyzed in the tax evasion literature. To fill this gap and to compare collusive tax evasion with independent tax evasion, this paper...

In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about others' behavior. Subjects have to decide between a 'registered' income, the realization of which...

We introduce public signals and cognitive dissonance into the standard Allingham-Sandmo-Yitzhaki (ASY) model of tax evasion. It turns out that the pres- ence of cognitive dissonanceattenuates tax evasion as individuals dislike allowing their true bevhaviour to diverge from their public statement...

Sales from businesses to consumers provide fertile ground for collaborative tax evasion. However, little is known about the phenomenon. We conduct a natural field experiment with 2,900 businesses in which we take the role of consumers and vary if we request an invoice for the delivery of a...

Collaborative evasion of taxes and social security fees is prevalent in household services, when a household hires a service provider and no third party is involved. However, evidence on the determinants of collaborative tax evasion in general and the household context in particular is lacking....

In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about others' behavior. Subjects have to decide between a 'registered' income, the realization of which...

In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about others’ behavior. Subjects have to decide between a ‘registered’ income, the realization of...

Sales from businesses to consumers provide fertile ground for collaborative tax evasion. However, little is known about the phenomenon. We conduct a natural field experiment with 2,900 businesses in which we take the role of consumers and vary if we request an invoice for the delivery of a...