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Norms, enforcement, and tax evasion

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  • Besley, Timothy
  • Jensen, Anders Ditlev
  • Persson, Torsten

Abstract

This paper studies individual and social motives in tax evasion. We build a simple dynamic model that incorporates these motives and their interaction. The social motives underpin the role of norms and is the source of the dynamics that we study. Our empirical analysis exploits the adoption in 1990 of a poll tax to fund local government in the UK, which led to widespread evasion. The evidence is consistent with the model's main predictions on the dynamics of evasion.

Suggested Citation

  • Besley, Timothy & Jensen, Anders Ditlev & Persson, Torsten, 2021. "Norms, enforcement, and tax evasion," LSE Research Online Documents on Economics 111519, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:111519
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    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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