Tax Compliance and Enforcement
Journal of Economic Literature
no. 4, December 2019
This paper reviews recent economic research in tax compliance and enforcement. After briefly laying out the economics of tax evasion, it focuses on recent empirical
contributions. It first discusses what methodologies and data have facilitated these contributions, and then presents critical summaries of what has been learned. It
discusses a promising new development—the analysis of randomized controlled trials mostly delivered via letters from the tax authority—and then reviews recent research
using various methods about the impact of the principal enforcement tax policy instruments: audits, information reporting, and remittance regimes. I also explore several
understudied issues worthy of more research attention. The paper closes by outlining a normative framework based on the behavioral response elasticities now being
credibly estimated that allow one to assess whether a given enforcement intervention is worth doing.
"Tax Compliance and Enforcement."
Journal of Economic Literature,
Tax Evasion and Avoidance
Fiscal Policies and Behavior of Economic Agents: General