Tax morale and tax evasion: Social preferences and bounded rationality

Z.Z. Méder, A Simonovits, J. Vincze

Research output: Contribution to journalArticleAcademicpeer-review


Abstract:we study a family of models of tax evasion, where a flat-rate tax finances only the provision of public goods, neglecting audits and wage differences. We focus on the comparison of two modeling approaches. The first is based on optimizing agents, who are endowed with social preferences, their utility being the sum of private consumption and moral utility. The second approach involves agents acting according to simple heuristics. We find that while we encounter the traditionally shaped laffer-curve in the optimizing model, the heuristics models exhibit (linearly) increasing laffer-curves.
Original languageEnglish
Pages (from-to)171-188
Number of pages18
JournalEconomic Analysis and Policy
Issue number2
Publication statusPublished - 1 Jan 2012

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