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Tax evasion in a behaviorally heterogeneous society: An evolutionary analysis

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  • Antoci, Angelo
  • Russu, Paolo
  • Zarri, Luca

Abstract

We focus on the tax evasion dynamics emerging from repeated interaction of three types of taxpayers: cheaters, honest citizens and punishers. By assuming that cultural evolution is driven by material payoffs only, we show that a long overlooked behavioral attitude towards taxation such as tax morale is important to dynamically induce higher levels of tax compliance within a large-scale population. The results of our evolutionary analysis reveal that the presence of taxpayers who both act honestly in the first place and are willing to costly sanction cheaters plays an important role for the long-run success of the social battle against tax evasion.

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  • Antoci, Angelo & Russu, Paolo & Zarri, Luca, 2014. "Tax evasion in a behaviorally heterogeneous society: An evolutionary analysis," Economic Modelling, Elsevier, vol. 42(C), pages 106-115.
    • Handle: RePEc:eee:ecmode:v:42:y:2014:i:c:p:106-115
    DOI: 10.1016/j.econmod.2014.06.002
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    Cited by:

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    2. Domenico De Giovanni & Fabio Lamantia & Mario Pezzino, 2018. "Evolutionary Tax Evasion and Optimal Regulation," Economics Discussion Paper Series 1814, Economics, The University of Manchester.
    3. Giovanni, Domenico De & Lamantia, Fabio & Pezzino, Mario, 2019. "A behavioral model of evolutionary dynamics and optimal regulation of tax evasion," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 79-89.
    4. Elena Gubar & Edgar Javier Sanchez Carrera & Suriya Kumacheva & Ekaterina Zhitkova & Galina Tomilina, 2018. "Games and Network Structures on Corruption, Income Inequality, and Tax Control," Working Papers 1808, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2018.
    5. Sanz-Sanz, José Félix, 2016. "The Laffer curve in schedular multi-rate income taxes with non-genuine allowances: An application to Spain," Economic Modelling, Elsevier, vol. 55(C), pages 42-56.
    6. Aurélie Bonein & Cécile Bazart, 2017. "The Strength of the Symbol: Are we Willing to Punish Evaders ?," Working Papers 17-02, LAMETA, Universtiy of Montpellier.
    7. Bo Yan & Zijie Jin & Lifeng Liu & Si Liu, 2018. "Factors influencing the adoption of the internet of things in supply chains," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 523-545, August.
    8. Wei Han, 2020. "The analysis on Chinese e-commerce tax losses based on the perspective of information asymmetry," Electronic Commerce Research, Springer, vol. 20(3), pages 651-677, September.
    9. Katarina Justic Jozicic & Katarina Kostelic & Marinko Skare, 2018. "Game Theory Applied to Business Decision Making under Fiscalization in Croatia: Analysis, Equilibrium, and Policy Recommendations," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(1 (Spring), pages 37-58.
    10. Fabio Lamantia & Mario Pezzino, 2021. "Social norms and evolutionary tax compliance," Manchester School, University of Manchester, vol. 89(4), pages 385-405, July.
    11. Bethencourt, Carlos & Kunze, Lars, 2020. "Social norms and economic growth in a model with labor and capital income tax evasion," Economic Modelling, Elsevier, vol. 86(C), pages 170-182.
    12. Stefano Dughera & Alain Marciano, 2020. "Altruism, predation and the Samaritan's dilemma," Working Papers hal-02550432, HAL.

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