NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Marcelo L. Bérgolo

Instituto de Economia (IECON)
Universidad de La Republica
1926 Gonzalo Ramirez
Montevideo, Uruguay

E-Mail: mbergolo@iecon.ccee.edu.uy
Institutional Affiliation: IECON-UDELAR

NBER Working Papers and Publications

July 2017Tax Audits as Scarecrows: Evidence from a Large-Scale Field Experiment
with Rodrigo Ceni, Guillermo Cruces, Matias Giaccobasso, Ricardo Perez-Truglia: w23631
The canonical model of Allingham and Sandmo (1972) predicts that firms evade taxes by optimally trading off between the costs and benefits of evasion. However, there is no direct evidence that firms react to audits in this way. We conducted a large-scale field experiment in collaboration with Uruguay’s tax authority to address this question. We sent letters to 20,440 small- and medium-sized firms that collectively paid more than 200 million dollars in taxes per year. Our letters provided exogenous yet nondeceptive signals about key inputs for their evasion decisions, such as audit probabilities and penalty rates. We measured the effect of these signals on their subsequent perceptions about the auditing process, based on survey data, as well as on the actual taxes paid, based on administrat...
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us