The Theory of Tax Evasion: A Retrospective View

@article{Sandmo2005TheTO,
  title={The Theory of Tax Evasion: A Retrospective View},
  author={Agnar Sandmo},
  journal={National Tax Journal},
  year={2005},
  volume={58},
  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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Abstract This paper examines some aspects of the decision to evade indirect taxes in the context of a monopolistic firm: in particular, the degree of interdependence between the tax shifting and theExpand
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Abstract The purpose of this paper is to analyze the optimal tax evasion decision in the context of an oligopolistic market with quantity setting firms. It is shown that the optimal amount of taxExpand
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The standard model of tax evasion based on the subjective expected utility maximization does not perform particularly well in econometric analyses: it predicts too little evasion and producesExpand
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Abstract The tax that a taxpayer wishes to evade is determined on the basis of his perception of the fairness of his fiscal treatment, with respect to both governmental supply of public goods and theExpand
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Abstract This paper is an attempt to incorporate tax evasion into the analysis of optimum income taxation. A model of variable labour supply with tax evasion is used to derive supply functions forExpand
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