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The economic models of tax compliance predict that individuals should evade taxes when the expected benefit of cheating … experiment shows that emotional arousal, measured by Skin Conductance Responses, increases in the proportion of evaded taxes. The …
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We use confidential data on Value Added Tax payments at the sector level, in two large Italian cities, to estimate the effect of audits publicity on tax compliance of local sellers. By employing a Difference-in-Differences identification strategy, we find that such publicity has a positive...
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