Rablen, M.D. orcid.org/0000-0002-3521-096X (2010) Tax evasion and exchange equity: a reference-dependent approach. Public Finance Review, 38 (3). pp. 282-305. ISSN 1091-1421
Abstract
The standard portfolio model of tax evasion with a public good produces the perverse conclusion that when taxpayers perceive the public good to be under-/overprovided, an increase in the tax rate increases/decreases evasion. The author treats taxpayers as thinking in terms of gains and losses relative to an endogenous reference level, which reflects perceived exchange equity between the value of taxes paid and the value of public goods supplied. With these alternative behavioral assumptions, the author overturns the aforementioned result in a direction consistent with the empirical evidence. The author also finds a role for relative income in determining individual responses to a change in the marginal rate of tax.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | Matthew D. Rablen, Tax Evasion and Exchange Equity: A Reference-Dependent Approach, Public Finance Review, Volume: 38 issue: 3, page(s): 282-305. Copyright © 2010 SAGE Publications. Reprinted by permission of SAGE Publications. |
Keywords: | exchange equity; tax compliance; reference-dependent utility; prospect theory; relative income |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 13 Apr 2018 11:21 |
Last Modified: | 13 Apr 2018 11:21 |
Published Version: | https://doi.org/10.1177/1091142110367858 Matthew D... |
Status: | Published |
Publisher: | SAGE Publications |
Refereed: | Yes |
Identification Number: | 10.1177/1091142110367858 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:129608 |