Social norms and evolutionary tax compliance

The paper studies tax evasion in an evolutionary setting. In addition to standard variables such as the fine individuals may have pay if found guilty or probability of being audited, agents’ inclination engage also be affected by social interactions. Moreover, expected payoffs include reputational costs rewards awarded society after individual is audited. shows how (i) norms play a very important role defining long?run evolution and, consequently, that (ii) policymakers should consider reforms would increase awareness and information rather than more (financially politically) expensive traditional auditing instruments; addition, (iii) fiscal/auditing policies carefully tailored particular economic setting place country.