The result: evasion is not just an individual decision.
It is mediated by professional networks, with important implications for how audit policies should be designed and evaluated.
Advisors differ in their willingness to play this role.
This heterogeneity creates a market for intermediated tax evasion, where taxpayers sort themselves based on how tolerant advisors are of evasion.
Exploiting quasi-random variation in audit policy, we find that tax advisors act as information hubs.
They learn about audit intensity from experience and incorporate this information into their clients’ tax strategies.
Using population-wide data on all Italian sole proprietors, matched with audits and tax advisors, we show that some advisors actively serve clients who intend to evade taxes.
The traditional view: tax advisors mainly provide technical expertise, helping taxpayers interpret complex tax laws.
Our evidence shows that some advisors play a much broader role.
Reposted by Georg Weizsäcker
My paper with @EleonoraPatacc2, @guiso_luigi, and @chiaralac, “Tax Professionals and Tax Evasion,” is finally out.
academic.oup.com/jeea/article...
If you are interested in social networks and fiscal policy, this one is for you. 🧵
Reposted by Marco Battaglini
Reposted by Marco Battaglini
"Welfare in the volunteer’s dilemma"
By @battaglini.bsky.social & Thomas Palfrey
www.sciencedirect.com/science/arti...
#econsky
"Welfare in the volunteer’s dilemma"
By @battaglini.bsky.social & Thomas Palfrey
www.sciencedirect.com/science/arti...
#econsky
So if you’ve got something in the works, consider submitting there.
We had a great experience!.
Also — shoutout to JPubE!
The editor and the referees were great 🙏...and the entire process was fast and efficient.
We study how welfare outcomes are shaped in strategic environments where individuals must decide whether to bear a cost for the public good — or hope someone else does. Classic dilemma, new insights. 😏
1/
Free access to our new article:
"Welfare in the Volunteer's Dilemma"
Joint with T. Palfrey.
📖 Free access: authors.elsevier.com/c/1ktgWAlw9~...
Reposted by Marco Battaglini
I hope you’ll listen to our conversation about free speech, academic freedom, and cuts to research funding.
We also discussed Columbia’s concessions and the detention of Tufts student Rumeysa Öztürk.
Reposted by Marco Battaglini
*wait for it*
Two co-chairs.
Yup, the satires write themselves.
https://www.washingtonpost.com/media/2023/06/21/alito-wsj-propublica-fishing-trip/