Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51382
Authors: 
Hokamp, Sascha
Pickhardt, Michael
Year of Publication: 
2010
Series/Report no.: 
CAWM discussion paper / Centrum für Angewandte Wirtschaftsforschung Münster 35
Abstract: 
We analyze the evolution and extent of income tax evasion under alternative governmental policies in an agent-based model with heterogeneous agents. A novel aspect of our modeling is the use of an exponential utility function, which allows us to assume rather realistic audit probabilities and to yield more realistic results with respect to the extent of tax evasion. Further, the introduction of lapse of time effects constitutes another novel aspect of our model. Among other things, the model allows for assessing the impact of alternative policies on tax evasion. Subject to the model features, we find that ethical norms and lapse of time effects reduce the extent of tax evasion particularly strong.
Subjects: 
income tax evasion
heterogeneous population
lapse of time
ethical behavior
agent-based models
JEL: 
H26
C9
Document Type: 
Working Paper

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