EconStor >
Westfälische Wilhelms-Universität Münster (WWU) >
Centrum für angewandte Wirtschaftsforschung Münster (CAWM), Universität Münster  >
CAWM Discussion Papers, Universität Münster  >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/52734
  
Title:Income tax evasion dynamics: Evidence from an agent-based econophysics model PDF Logo
Authors:Pickhardt, Michael
Seibold, Goetz
Issue Date:2011
Series/Report no.:CAWM discussion paper / Centrum für Angewandte Wirtschaftsforschung Münster 53
Abstract:We analyze income tax evasion dynamics in a standard model of statistical mechanics, the Ising model of ferromagnetism. However, in contrast to previous research, we use an inhomogeneous multi-dimensional Ising model where the local degrees of freedom (agents) are subject to a specific social temperature and coupled to external fields which govern their social behavior. This new modeling frame allows for analyzing large societies of four different and interacting agent types. As a second novelty, our model may reproduce results from agent-based models that incorporate standard Allingham and Sandmo tax evasion features as well as results from existing two-dimensional Ising based tax evasion models. We then use our model for analyzing income tax evasion dynamics under different enforcement scenarios and point to some policy implications.
Subjects:tax evasion
tax compliance
Ising Model
econophysics
numerical simulation
JEL:H26
O17
C15
Document Type:Working Paper
Appears in Collections:CAWM Discussion Papers, Universität Münster

Files in This Item:
File Description SizeFormat
67883203X.pdf268.97 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/52734

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.