In a recent, 58 page, paper, Hashimzade, Myles and Tran-Nam (2009) "New Approaches to the Economics of Tax Evasion" survey alternative approaches to tax evasion. Their central conclusion is, in their own words (p. 56): "What they [the non-expected utility models] do not do is change the...

In this paper we begin by stressing the empirical importance of non-linear weighting of probabilities, which expected utility theory (EU) is unable to accommodate. We then go on to outline three stylized facts on non-linear weighting that any alternative theory of risk must address. These are...