Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52734
Authors: 
Pickhardt, Michael
Seibold, Goetz
Year of Publication: 
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

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