Corruptibility and tax evasion

Roy Cerqueti and Raffaella Coppier ()

European Journal of Law and Economics, 2015, vol. 39, issue 2, 355-373

Abstract: Reduction of fiscal evasion may be pursued by introducing incentive schemes for tax inspectors. The aim of this paper is to explain the role of such bonuses in an economic environment with corruption, i.e. in a world where entrepreneurs and tax inspectors are open to bribery. In detail, we analyze the role of a public incentive scheme, where the tax inspector’s bargaining strength is endogenous with respect to an incentive mechanism: indeed the knowledge that even if an entrepreneur does not agree to pay the bribe, s/he can report tax evasion and be partly rewarded for this, increases the tax inspector’s bargaining strength. Copyright Springer Science+Business Media New York 2015

Keywords: Corruption; Bayesian game; Tax evasion; D73; H26; K42 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:ejlwec:v:39:y:2015:i:2:p:355-373

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DOI: 10.1007/s10657-013-9406-z

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