Tax evasion and cognitive dissonance

Publication date
2014
Document type
Working paper
Author
Gattke, Susan
Organisational unit
Keyword
Public Signal
Abstract
We introduce public signals and cognitive dissonance into the standard Allingham-Sandmo-Yitzhaki (ASY) model of tax evasion. It turns out that the presence of cognitive dissonanceattenuates tax evasion as individuals dislike allowing their true bevhaviour to diverge from their public statement of the 'admissible' degree of tax evasion, which, in turn, they use to influence the probability of detection. Some potential policy conclusions and extensions are discussed.
Version
Not applicable (or unknown)
Access right on openHSU
Metadata only access