IDEAS home Printed from
   My bibliography  Save this article

The Indirect Effects of Auditing Taxpayers


  • Marisa Ratto

    () (Universite Paris–Dauphine (LEDa-SDFi), Paris, France)

  • Richard Thomas

    (HM Revenue & Customs, London, United Kingdom)

  • David Ulph

    (School of Economics and Finance, University of St. Andrews, Fife, Scotland, United Kingdom)


Empirical studies suggest that the effects of tax audits are not only in terms of recovered unpaid tax (direct effect) but there are also indirect effects in terms of future better compliance that tend to outweigh the direct effect. However, current policy decisions on the allocation of investigation resources across different groups of taxpayers generally neglect the indirect effects, generating a potential resource misallocation issue. With the aim to clarify a possible mechanism through which the indirect effects work, the authors model tax compliance as a social norm and show that taxpayers’ interdependencies introduce a multiplier effect to an increase in the audit rate.

Suggested Citation

  • Marisa Ratto & Richard Thomas & David Ulph, 2013. "The Indirect Effects of Auditing Taxpayers," Public Finance Review, , vol. 41(3), pages 317-333, May.
  • Handle: RePEc:sae:pubfin:v:41:y:2013:i:3:p:317-333

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Athanasios O. Tagkalakis, 2014. "The direct and indirect effects of audits on the tax revenue in Greece," Economics Bulletin, AccessEcon, vol. 34(2), pages 984-1001.
    2. Matthew D. Rablen, 2014. "Audit Probability versus Effectiveness: The Beckerian Approach Revisited," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(2), pages 322-342, April.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:41:y:2013:i:3:p:317-333. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.