The standard model of tax evasion based on the subjective expected utility maximization does not perform particularly well in econometric analyses: it predicts too little evasion and produces unsatisfactory econometric parameter estimates. The model is extended by looking at how the tax...

The standard model of tax evasion based on the subjective expected utility maximization does not perform particularly well in econometric analyses: it predicts too little evasion and produces unsatisfactory econometric parameter estimates. The model is extended by looking at how the tax...

In this Article, I set forth a theory (“concentrated enforcement”) for allocating scarce enforcement resources within a low compliance tax sector. The intuition behind concentrated enforcement is that, under a number of different circumstances, there may be increasing marginal returns to...