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Norms, Enforcement, and Tax Evasion

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  • Anders Jensen

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 is 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 UK, which led to widespread evasion. The evidence is consistent with the model’s main predictions on the dynamics of evasion.

Suggested Citation

  • Anders Jensen, 2019. "Norms, Enforcement, and Tax Evasion," CID Working Papers 372, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:372
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    References listed on IDEAS

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