This paper provides a simple model, based on expected utility theory, for rationalizing taxpayers' reaction to an unexpected amnesty offer. The model is estimated through a deterministic approach, with reference to data pertaining to the 1991 and 1994 Italian tax amnesties. Results seem sound...

Optimal taxation under income uncertainty has been extensively developed in expected utility theory, but it is still open for inseparable utility function between income and effort. As an alternative of decision-making under uncertainty, prospect theory (Kahneman and Tversky (1979), Tversky and...

The psychological basis for rank-dependent probability weighting, and for an inverse-S probability weighting function (PWF) in particular, has often been questioned. I examine the existence and shape of the PWF in a model allowing for optimism/pessimism over probability distributions and for...

Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining decisionmaking under risk. I examine interlinkages between these concepts in a model of decisionmaking that allows for loss averse/tolerant stochastic reference dependence and...

In this paper we model taxpayers reactions to the possibility of either reporting income as usual and running the risk of an audit or reporting a "cutoff" income and paying a threshold tax that gives the certainty of not being audited. Models of this kind already discussed in the literature...

This paper investigates the presence of framing effects and loss aversion in tax reporting behavior of wage earners using a balanced panel of German income tax return data. Reference dependence and loss aversion suggest that individuals in a perceived loss situation attribute higher value to a...

This paper establishes that loss aversion fundamentally influences the tax avoidance behavior of property taxpayers. Upon receiving notice of a new assessed value, homeowners have the option to appeal, which, if successful, could lower their tax base. I conjecture that a lagged, salient...

​This paper investigates the effect of CFO gender on corporate tax aggressiveness. Focusing on firms that experience a male-to-female CFO transition, the paper compares those firms' degree of tax aggressiveness during the pre- and post-transition periods. Using the probability of tax...

This paper investigates the effect of CFO gender on corporate tax aggressiveness. Focusing on firms that experience a male-to-female CFO transition, the paper compares those firms' degree of tax aggressiveness during the pre- and post-transition periods. Using the probability of tax sheltering,...

A strictly risk-averse manager makes joint decisions on a firm's tax payments and book profit declarations according to accounting standards. It is analysed how the incentives to overpay or evade taxes and to inflate book profits are influenced by (1) the composition of the manager's...