A Tax Evasion - Bribery Game: Experimental Evidence from Ukraine
AbstractThis paper examines the issue of tax evasion by enterprises through underreporting activity. We develop a view of this phenomenon as an equilibrium of the game between a businessman and an imperfectly monitored supervising official, in which a businessman can hide part of his profit and offer bribe to official. We determine conditions under which such tax evasion and bribery become wide-spread in the society, resulting in shadow economy. The game is put into an experimental setting in Kiev, Ukraine, with the emphasis of spreading of the tax evasion and bribery activity in the laboratory setting. We find that once it becomes known that substantial share of subjects playing the role of supervising officials agree to accept bribes from subjects playing the role of businessmen, the latter offer bribes more aggressively. Yet, this in turn does not affect the behavior of subjects playing the role of supervising officials.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.
Volume (Year): 3 (2006)
Issue (Month): 1 (June)
Contact details of provider:
Postal: Corso Matteotti 22 - Castellanza (VA) 21053
Phone: +39 (0)331-572 1
Fax: +39 (0)331-572 320
Web page: http://eaces.liuc.it/default.asp
More information through EDIRC
Tax Evasion; Bribery; Experiment; Learning in Games;
Find related papers by JEL classification:
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bobkova, Nina & Egbert, Henrik, 2012. "Corruption investigated in the lab: a survey of the experimental literature," MPRA Paper 38163, University Library of Munich, Germany.
- Abigail Barr & Danila Serra, 2009.
"The effects of externalities and framing on bribery in a petty corruption experiment,"
Springer, vol. 12(4), pages 488-503, December.
- Abigail Barr & Danila Serra, 2008. "The effects of externalities and framing on bribery in a petty corruption experiment," CSAE Working Paper Series 2008-24, Centre for the Study of African Economies, University of Oxford.
- Abigail Barr & Danila Serra, 2008. "The effects of externalities and framing on bribery in a petty corruption experiment," Economics Series Working Papers WPS/2008-24, University of Oxford, Department of Economics.
- Abigail Barr & Danila Serra, 2007.
"Externality and framing effects in a bribery experiment,"
Economics Series Working Papers
WPS/2007-16, University of Oxford, Department of Economics.
- Abigail Barr & Danila Serra, 2007. "Externality and framing effects in a bribery experiment," CSAE Working Paper Series 2007-16, Centre for the Study of African Economies, University of Oxford.
- Escobari, Diego, 2011.
"Imperfect Detection of Tax Evasion in a Corrupt Tax Administration,"
39198, University Library of Munich, Germany.
- Diego Escobari, 2012. "Imperfect Detection of Tax Evasion in a Corrupt Tax Administration," Public Organization Review, Springer, vol. 12(4), pages 317-330, December.
- Iskandar, Deden Dinar & Wuenscher, Tobias, 2012. "Finding the Stronger Impact among Bribery, Financial Reward, and Religious Attitude: The Insights of Experiment on Environmental Tax Compliance in Indonesia," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124316, Australian Agricultural and Resource Economics Society.
- David Joulfaian, 2009. "Bribes and Business Tax Evasion," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 227-244, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piero Cavaleri).
If references are entirely missing, you can add them using this form.