Dynamics of tax evasion through an epidemic-like model

Rafael M. Brum () and Nuno Crokidakis
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Rafael M. Brum: Instituto de Física, Universidade Federal Fluminense, Av. Litorânea s/n, 24210-340 Niterói-Rio de Janeiro, Brazil
Nuno Crokidakis: Instituto de Física, Universidade Federal Fluminense, Av. Litorânea s/n, 24210-340 Niterói-Rio de Janeiro, Brazil

International Journal of Modern Physics C (IJMPC), 2017, vol. 28, issue 02, 1-14

Abstract: In this work, we study a model of tax evasion. We considered a fixed population divided in three compartments, namely honest tax payers, tax evaders and a third class between the mentioned two, which we call susceptibles to become evaders. The transitions among those compartments are ruled by probabilities, similarly to a model of epidemic spreading. These probabilities model social interactions among the individuals, as well as the government’s fiscalization. We simulate the model on fully-connected graphs, as well as on scale-free and random complex networks. For the fully-connected and random graph cases, we observe that the emergence of tax evaders in the population is associated with an active-absorbing nonequilibrium phase transition, that is absent in scale-free networks.

Keywords: Dynamics of social systems; econophysics; computer simulations; complex networks (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0129183117500231

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