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 produces unsatisfactory econometric parameter estimates. The model is extended by looking at how the tax...

Standard compliance theory assumes that individuals evade to the extent it benefits them monetarily. However, a growing empirical literature suggests that many underlying cognitive considerations, including lying aversion, may play a non-trivial role when individuals make decisions.This study...

This paper studies the prevalence and consequences of size-dependent tax enforcement and compliance. The identification strategy uses the ranking of industries' average firm size in the United States as an instrument for the size ranking of the same industries in developing countries. Data on...