Tax Evasion Dynamics via Kinetic Models of Opinion Dynamics

F. W. S. Lima

Dietrich Stauffer Computational Physics Lab, Departamento de Fisica, Universidade Federal do Piaui,Teresina, Brazil.

DOI: 10.4236/tel.[phone]                

Abstract

The socioeconomic phenomena as tax evasion in agent-based community can be studied numerically through the Zaklan model (ZM). The ZM has been con_gured as an excellent tool to control the tax evasion uctuations in communities with agents or individuals that can be considered tax evaders or honest. The dynamic of temporal evolution of the ZM was studied initially via the equilibrium Ising model (IM), non-equilibrium Majority-vote model (MVM) and recently via a three-state kinetic agent-based model. Here, through Monte Carlo simulations, we study the problem of the tax evasion uctuations using a discrete version of the kinetic model of opinion dynamics (BCS) in the dynamic of the temporal evolution of the ZM. Unlike previous models cited here in the BCS model, the interactions between agents occur in pairs. Then, we found that the BCS model is as e_cient as the IM and MVM in controlling the tax evasion uctuations. This control is even better when we use strong punishment values k even for low audit probabilities p_a.

Keywords

Opinion Dynamics, Sociophysics, Majority Vote, Non-Equilibrium

Conflicts of Interest

The authors declare no conflicts of interest regarding the publication of this paper.

References

[1]	Bloomquist, K. (2006) A Comparison of Agent-Based Models of Income Tax Evasion. Social Science Computer Review, 24, 411-425. https://doi.org/10.1177/0894439306287021
[2]	Follmer, H. (1974) Random Economies with Many Interacting Agents. Journal of Mathematical Economics, 1, 51-62. https://doi.org/10.1016/0304-4068(74)90035-4
[3]	Andreoni, J., Erard, B. and Feinstein, J. (1998) Tax Compliance. Journal of Economic Literature, 36, 818.
[4]	Lederman, L. (2003) The Interplay between Norms and Enforcement in Tax Compliance. Public Law Research Paper No. 50. https://doi.org/10.2139/ssrn.391133
[5]	Slemrod, J. (2007) Cheating Ourselves: The Economics of Tax Evasion. Journal of Economic Perspective, 21, 25-48. https://doi.org/10.1257/jep.21.1.25
[6]	Wintrobe, R. and Gerxhani, K. (2004) Tax Evasion and Trust: A Comparative Analysis. Proceedings of the Annual Meeting of the European Public Choice Society, Berlin, 15-18 April 2004.
[7]	Gachter, S. (2006) Conditional Cooperation: Behavioral Regularities from the Lab and the Field and Their Policy Implications. Discussion Papers 2006-03, University of Nottingham, Nottingham.
[8]	Frey, B.S. and Togler, B. (2006) Tax Evasion, Black Activities and Deterrence in Germany: An Institutional and Empirical Perspective. IEW-Working Papers 286, Institute for Empirical Research in Economics, University of Zurich, Zurich.
[9]	Zaklan, G., Westerhoff, F. and Stauffer, D. (2008) Analysing Tax Evasion Dynamics via the Ising Model. Journal of Economic Interaction and Coordination, 4, 1. https://doi.org/10.1007/s11403-008-0043-5
[10]	Zaklan, G., Lima, F.W.S. and Westerhoff, F. (2008) Controlling Tax Evasion Fluctuations. Physica A: Statistical Mechanics and Its Applications, 387, 5857-5861. https://doi.org/10.1016/j.physa.2008.06.036
[11]	Oliveira, M.J. (1992) Isotropic Majority-Vote Model on a Square Lattice. Journal of Statistical Physics, 66, 273-281. https://doi.org/10.1007/BF01060069
[12]	Lima, F.W.S. (2010) Analysing and Controlling the Tax Evasion Dynamics via Majority-Vote Model. Journal of Physics: Conference Series, 246, Article ID: 012033. https://doi.org/10.1088/1742-6596/246/1/012033
[13]	Lima, F.W.S. (2012) Controlling the Tax Evasion Dynamics via Majority-Vote Model on Various Topologies. Theoretical Economics Letters, 2, 87-93. https://doi.org/10.4236/tel.[phone]
[14]	Lima, F.W.S. (2012) Tax Evasion and Nonequilibrium Model on Apollonian Networks. International Journal of Modern Physics C, 23, Article ID: 1250079. https://doi.org/10.1142/S0129183112500799
[15]	Lima, F.W.S. (2012) Tax Evasion Dynamics and Zaklan Model on Opinion-Dependent Network. International Journal of Modern Physics C, 23, Article ID: 1250047. https://doi.org/10.1142/S0129183112500477
[16]	Lima, F.W.S. (2015) Tax Evasion Dynamics and Nonequilibrium Zaklan Model with Heterogeneous Agents on Square Lattice. International Journal of Modern Physics C, 26, Article ID: 1550035. https://doi.org/10.1142/S0129183115500357
[17]	Lima, F.W.S. (2016) Tax Evasion Dynamics via Non-Equilibrium Model on Directed Small-World Network. Theoretical Economics Letters, 6, 819-826. https://doi.org/10.4236/tel.[phone]
[18]	Crokidakis, N. (2014) A Three-State Kinetic Agent-Based Model to Analyze Tax Evasion Dynamics. Physica A: Statistical Mechanics and Its Applications, 414, 321-328. https://doi.org/10.1016/j.physa.2014.07.056
[19]	Biswas, S., Chatterjee, A. and Sen, P. (2012) Disorder Induced Phase Transition in Kinetic Models of Opinion Dynamics. Physica A: Statistical Mechanics and Its Applications, 391, 3257-3265. https://doi.org/10.1016/j.physa.2012.01.046
[20]	Mukherjee, S. and Chatterjee, A. (2016) Disorder-Induced Phase Transition in an Opinion Dynamics Model: Results in Two and Three Dimensions. Physical Review E, 94, Article ID: 062317. https://doi.org/10.1103/PhysRevE.94.062317