Circumstantial risk : impact of future tax evasion and labor supply opportunities on risk exposure


Doerrenberg, Philipp ; Duncan, Denvil ; Zeppenfeld, Christopher


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URL: https://ub-madoc.bib.uni-mannheim.de/35948
URN: urn:nbn:de:bsz:180-madoc-359482
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: ZEW Discussion Papers
Volume: 14-014
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: G11 , H21 , H24 , H26 , J22,
Keywords (English): Tax evasion , labor supply , risk behavior , lab experiment
Abstract: This paper examines whether risk-taking in a lottery depends on the opportunity to respond to the lottery outcome through additional labor effort and/or tax evasion. Previous empirical attempts to answer this question face identification issues due to self selection into jobs that facilitate tax evasion and labor effort exibility. We address these identification issues using a laboratory experiment (N = 180). Subjects have the opportunity to invest earned income in a lottery and, depending on randomly assigned treatment states, have the opportunity to respond to the lottery outcome through evasion and/or extra labor effort. We find strong evidence that ex-post access to labor opportunities reduces ex-ante risk willingness while access to tax evasion has no effect on risk behavior. We discuss possible explanations for this result based on the existing literature.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Doerrenberg, Philipp ; Duncan, Denvil ; Zeppenfeld, Christopher (2014) Circumstantial risk : impact of future tax evasion and labor supply opportunities on risk exposure. Open Access ZEW Discussion Papers Mannheim 14-014 [Working paper]
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