Tax evasion
Subtitle: cheating rationally or deciding emotionally?
By: by Giorgio Coricelli ...[et al]
Series: Discussion paper -- no. 3103; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 3103
Publisher: IZA
Published: 2007
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] :
Subjects: Tax evasion
Description: "The economic models of tax compliance predict that individuals should evade taxes when the expected benefit of cheating is greater than its expected cost. When this condition is fulfilled, the high compliance however observed remains a puzzle. In this paper, we investigate the role of emotions as a possible explanation of tax compliance. Our laboratory experiment shows that emotional arousal, measured by Skin Conductance Responses, increases in the proportion of evaded taxes. The perspective of punishment after an audit, especially when the pictures of the evaders are publicly displayed, also raises emotions. We show that an audit policy that induces shame on the evaders favors compliance"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 10/12/2007.

Includes bibliographical references.

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