The Theory of Tax Evasion: A Retrospective View

  title={The Theory of Tax Evasion: A Retrospective View},
  author={Agnar Sandmo},
  journal={National Tax Journal},
  pages={643 - 663}
  • A. Sandmo
  • Published 2005
  • Economics
  • National Tax Journal
The paper gives an overview of some main themes in the theory of tax evasion, starting from Allingham and Sandmo (1972). It reviews the comparative statics of the original model of individual behavior where the tax evasion decision is analogous to portfolio choice, and its extensions to incorporate socially conscious behavior, participation in the black labor market and tax evasion by firms. It also discusses the analysis of tax incidence and the problems involved in moving from individual to… Expand
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