Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

See all formats and pricing
More options …

Does the Level of Work Effort Influence Tax Evasion? Experimental Evidence

Christoph Bühren / Thorben C. Kundt
  • Helmut-Schmidt-University Hamburg, Economics Department, Holstenhofweg 85, 22043 Hamburg, Germany
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2016-02-11 | DOI: https://doi.org/10.1515/roe-2014-0203


Using a real effort experiment, we analyze the dependence of tax evasion on the amount of effort invested to generate income. In three treatments, subjects were either endowed with income or had to work moderately or arduously to earn it. In line with prospect theory, subjects evaded more taxes when they worked hard for their income. We find little evidence for the prediction that tax evasion in the endowed treatment is higher than that in the moderate-effort treatment.

Keywords : tax evasion; prospect theory; house money effect; sunk cost effect; real effort experiment

About the article

Published Online: 2016-02-11

Published in Print: 2014-08-01

Citation Information: Review of Economics, Volume 65, Issue 2, Pages 137–158, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2014-0203.

Export Citation

© 2014 by Lucius & Lucius, Stuttgart.

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

C.Y. Lawrence Choo, Miguel A. Fonseca, and Gareth D. Myles
Journal of Economic Behavior & Organization, 2016, Volume 124, Page 102

Comments (0)

Please log in or register to comment.
Log in