Economic Theory and the Literature

  • Jeffrey A. Dubin


The economic analysis of crime began in 1968 with Becker’s classic article “Crime and Punishment: An Economic Approach.” While Becker mentioned tax evasion as an area of application for his general model, Allingham and Sandmo and Srinivasan provided the analysis. Generally, this approach treats noncompliance as a rational individual decision based upon probabilities of detection and conviction and levels of punishment. In Allingham and Sandmo’s model, the taxpayer’s actual income is exogenously given and known by the taxpayer but not the IRS.


Audit Rule Labor Supply Decision Audit Rate General Deterrence Effect Audit Selection 
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Copyright information

© Springer Science+Business Media, LLC  2012

Authors and Affiliations

  1. 1.Anderson School of ManagementGlobal Economics and ManagementLos AngelesUSA

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