Tax evasion and orders of risk aversion

• 成果类型: Article; Proceedings Paper
• 署名作者: Bernasconi, M
• 署名单位: University of Pavia
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(97)00051-0
• 发表日期: 1998
• 页码: 123-134
• 关键词: tax evasion; risk attitudes; probability weights

摘要

The classic Allingham and Sandmo's (Journal of Public Economics, 1 (1972) 323-338) portfolio choice approach to income tax evasion has been increasingly criticised because it requires an 'excess' degree of risk aversion to explain the observed rate of tax compliance. In this paper we argue that there may not necessarily be 'excess risk aversion'; and that the evidence can be explained by the distinction between orders of risk aversion, as defined by Segal and Spivak (Journal of Economic Theory, 51 (1990) 111-125) and considered in regard to the same problem of anomalous 'excess risk aversion' in financial and insurance markets. (C) 1998 Elsevier Science S.A.