We relate tax evasion behavior to a substantial literature on self and social comparison in judgements. Taxpayers 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...

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...

Agent based models are proposed as an adequate tool for analysing tax payer decisions and, thereby, the consequences of such decisions as they manifest themselves at the macro level. TAXSIM models the conduct of agents of three types, i.e. employers, employees and the government, in an economy...

The article concerns with the subject of studying economic behavior of taxpayers with regard to tax evasion. An overview of theoretic and methodological approaches concerning decision making on the base of rational and behavior principles is given. The methodology of research assumes application...

This paper evaluates the relative importance of labor productivity vs. income taxes and social security contributions for tax compliance in an economy with a large degree of informality. To this end, we build a bargaining model in which matched employer-employee pairs of heterogeneous productive...

An Agent-Based Model (ABM) accounting for tax-morale and loss-aversion was implemented over different network systems with social interactions at the local level to study the phenomenon of tax evasion. This ABM is an innovative model which integrates endogenous characteristics of heterogeneous...

The paper presents the main characteristics of BETAMOD, a static microsimulation model that reproduces the Italian personal income tax (IRPEF), as well as local income taxes, namely the regional and municipal additional income taxes, building on a detailed reconstruction of tax legislation. With...

We develop a model where heterogeneous agents maximize their individual utility based on (after tax) income and on the level of public expenditure (as in Cowell, Gordon, 1988). Agents are different in risk aversion and in the relative preference for public expenditure with respect to personal...

We analyze the effect of social norms and enforcement on the dynamics of taxpayer compliance. Specifically, we develop two models to evaluate the movement between classes of compliant and noncompliant taxpayers. Our analysis suggests that the effect on compliance of changing enforcement levels...