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Worker or Shirker – Who Evades More Taxes? A Real Effort Experiment

  • Christoph Bühren

    ()

    (University of Kassel)

  • Thorben C. Kundt

    ()

    (University of the Federal Armed Forces)

With the help of a real effort experiment, we analyze if tax evasion depends on the amount of effort invested to generate income. In three treatments, subjects were either endowed with income or had to work moderately or hard to earn it. In line with prospect theory, subjects evaded more taxes when they worked hard for their income. We find little evidence for the prediction that tax evasion in the endowed treatment is higher than in the moderate work treatment.

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/26-2013_buehren.pdf
File Function: First 201326
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Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201326.

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Length: 30 pages
Date of creation: 2013
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:201326
Contact details of provider: Postal: Universitätsstraße 25, 35037 Marburg
Phone: 06421/28-1722
Fax: 06421/28-4858
Web page: http://www.uni-marburg.de/fb02/
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