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Norms, Enforcement, and Tax Evasion

Author

Listed:
  • Timothy Besley

    (LSE and CIFAR)

  • Anders Jensen

    (Harvard Kennedy School and NBER)

  • Torsten Persson

    (IIES and CIFAR)

Abstract

This paper studies individual and social motives in tax evasion. We build a simple dynamic model that incorporates these motives and their interaction. The social motives underpin the role of norms and are the source of the dynamics that we study. Our empirical analysis exploits the adoption in 1990 of a poll tax to fund local government in the United Kingdom, which led to widespread evasion. The evidence is consistent with the model's main predictions on the dynamics of evasion.

Suggested Citation

  • Timothy Besley & Anders Jensen & Torsten Persson, 2023. "Norms, Enforcement, and Tax Evasion," The Review of Economics and Statistics, MIT Press, vol. 105(4), pages 998-1007, July.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:4:p:998-1007
    DOI: 10.1162/rest_a_01123
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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