A multi-agent-based approach to tax morale

2008/06/02 by Georg Zaklan, Zaklan, G., F. W. S. Lima +3
Business, Management and Accounting · Economics, Econometrics and Finance · Social Sciences · #Corporate Taxation and Avoidance #Experimental Behavioral Economics Studies #FOS: Physical sciences #Physics and Society (physics.soc-ph) #Taxation and Compliance Studies

paper · pdf · doi:10.48550/arxiv.0806.0344

openalex publication_date 2008/06/02 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We embed the behaviour of tax evasion into the standard two-dimensional Ising model. In the presence of an external magnetic field, the Ising model is able to generate the empirically observed effect of tax morale, i.e. the phenomenon that in some countries tax evasion is either rather high or low. The external magnetic field captures the agents' trust in governmental institutions. We also find that tax authorities may curb tax evasion via appropriate enforcement mechanisms. Our results are robust for the Barabási-Albert and Voronoi-Delaunay networks.

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