Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment
(2023)
Journal Article
Bergolo, M., Ceni, R., Cruces, G., Giaccobasso, M., & Perez-Truglia, R. (2023). Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment. American Economic Journal: Economic Policy, 15(1), 110-153. https://doi.org/10.1257/pol.20200321
The canonical model of Allingham and Sandmo (1972) predicts that firms evade taxes by optimally trading off between the costs and benefits of evasion. However, there is no direct evidence that firms react to audits in this way. We conducted a large-s... Read More about Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment.