Econometric analyses of the standard model of tax evasion overwhelmingly reveal that auditing rates and fines do not have the expected, systematic and sizeable deterrence effect on tax evasion. It is shown that tax morale may be the missing factor. In Swiss cantons, characterized by referendum...

This paper analyzes bureaucracy within the context of the politico-economic framework using the rational choice approach. Bureaucracy interacts with various groups of decision-makers, and its influence depends on institutional differences, in particular representative democracy with or without...

The relative efficiency of private and public production of a public service (in particular households' refuse collection) is studied using the theory of property rights and the economic theory of bureaucracy. Both kinds of institutional organization of production result in inefficiencies if...