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Evolution of Tax Evasion Author info | Abstract | Publisher info | Download info | Related research | Statistics Lipatov, Vilen
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In this paper we analyze a tax evasion game with taxpayer learning by imitation. If the authority commits to a fixed auditing probability, a positive share of cheating is obtained in equilibrium. This stands in contrast to the existing literature that yields full compliance of audited taxpayer who are rational, have a lot of information and thus do not need to interact. When the authority adjusts auditing probability every period, cycling in cheating-auditing occurs. Thus, the real life phenomenon of compliance fluctuations is explained within the model rather than by exogenous parameter shifts.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
966.
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Date of creation: Jun 2003Date of revision:
06 Dec 2005Handle: RePEc:pra:mprapa:966Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://mpra.ub.uni-muenchen.de More information through EDIRC
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Keywords: tax evasion imitation learning Other versions of this item:
Find related papers by JEL classification: C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Brian Erard & Jonathan S. Feinstein, 1994.
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Ross Cressman & Jean-Francois Wen & William Morrison, 1998.
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Clotfelter, Charles T, 1983.
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Eduardo M.R.A. Engel & James R. Hines, Jr., 1999.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Constadina Passa & Anastasios Xepapadeas, 2008.
"Regulation of Farming Activities: An Evolutionary Approach ,"
Working Papers
0811, University of Crete, Department of Economics.
[Downloadable!]
Lipatov, Vilen, 2006.
"Tax Evasion and Coordination ,"
MPRA Paper
1251, University Library of Munich, Germany, revised Dec 2006.
[Downloadable!]
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