Hashimzade, N., Myles, G.D. and Rablen, M.D. orcid.org/0000-0002-3521-096X (2016) Predictive analytics and the targeting of audits. Journal of Economic Behavior and Organization, 124 (1). pp. 130-145. ISSN 0167-2681
Abstract
The literature on audit strategies has focused on random audits or on audits conditioned only on income declaration. In contrast, tax authorities employ the tools of predictive analytics to identify taxpayers for audit, with a range of variables used for conditioning. The paper explores the compliance and revenue consequences of the use of predictive analytics in an agent-based model that draws upon a behavioral approach to tax compliance. The taxpayers in the model form subjective beliefs about the probability of audit from social interaction, and are guided by a social custom that is developed from meeting other taxpayers. The belief and social custom feed into the occupational choice between employment and two forms of self-employment. It is shown that the use of predictive analytics yields a significant increase in revenue over a random audit strategy.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2015 Elsevier B.V. This is an author produced version of a paper subsequently published in Journal of Economic Behavior & Organization. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Dates: |
|
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: | 19 Apr 2018 09:15 |
Last Modified: | 19 Apr 2018 09:15 |
Published Version: | https://doi.org/10.1016/j.jebo.2015.11.009 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jebo.2015.11.009 |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:129609 |