This paper models the impact of extrinsic incentives in a tax compliance model. It also provides experimental evidence that confirms the existence of a positive relationship between rewards and tax compliance. If individuals are audited, rewards for honest taxpayers are effective in increasing...

We examine the impact of fiscal policy in the management of water resources by using a computable general equilibrium model. Several comparative static exercises are carried out to assess the effects of a particular fiscal policy on economic welfare. Finally, we state a set of fiscal policy...