An Attempt to Control Tax Evasion
AbstractThe main object of this paper is the study of tax evasion from a theoretical point of view. We construct a simple two-player model in order to analyze the interaction between the taxpayer and the IRS and the main tool we use is game theory. We derive equilibrium solutions for the static game and we also provide some interesting comparative statics results. Then, we develop a dynamic game over an infinite number of periods. We show and comment two different kinds of long-run equlibria.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15084.
Date of creation: 06 Jul 2006
Date of revision: 07 May 2009
Tax Evasion; Policy; Game Theory;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
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