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Tax evasion under behavioral structures

Author

Listed:
  • Gabriela S. Pantoja

    (a Ministry of Development, Industry and Foreign Trade of Brazil (MDIC), Brazi)

  • Rodrigo S. Penaloza

    (University of Brasília, Brazil)

Abstract

We study the strategic interactions between the fiscal authority and the taxpayer regarding tax evasion and auditing. We fit this interaction into a Bayesian game and introduce the concept of behavioral consistency, which helps reducing the number of available strategies and models the stylized fact according to which the choice to evade is subject to behavioral patterns..

Suggested Citation

  • Gabriela S. Pantoja & Rodrigo S. Penaloza, 2014. "Tax evasion under behavioral structures," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(1), pages 30-40.
    • Handle: RePEc:anp:econom:v:15:y:2014:i:1:30_40
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Tax evasion; Bayesian equilibrium; Behavioral consistency;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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