Collaborative Tax Evasion in the Provision of Services to Consumers: A Field Experiment†

Doerr A, Necker S (2021)

Publication Type: Journal article

Publication year: 2021

Journal

American Economic Journal: Economic Policy American Economic Association

Book Volume: 13

Pages Range: 185-216

Journal Issue: 4

DOI: 10.1257/pol.20190675

Abstract

We conduct a field experiment with sellers of home improvement services on two German online markets. We take the role of consumers and vary whether we request an invoice for the delivery of the service. In a market that allows anyone to sell anonymously, a willingness to evade is prevalent. In a market that keeps track of credentials, sellers are only willing to evade when a willingness to collude is signaled. The evasion discount is in most estimates not larger than the tax subsidy for legal demand. Evasion is unlikely to be beneficial for many consumers in our setting.

Authors with CRIS profile

Sarah Necker

Additional Organisation(s)

Lehrstuhl für Volkswirtschaftslehre

Involved external institutions

Universität Basel CH Switzerland (CH) Albert-Ludwigs-Universität Freiburg DE Germany (DE)

How to cite

APA:

Doerr, A., & Necker, S. (2021). Collaborative Tax Evasion in the Provision of Services to Consumers: A Field Experiment†. American Economic Journal: Economic Policy, 13(4), 185-216. https://dx.doi.org/10.1257/pol.20190675

MLA:

Doerr, Annabelle, and Sarah Necker. "Collaborative Tax Evasion in the Provision of Services to Consumers: A Field Experiment†." American Economic Journal: Economic Policy 13.4 (2021): 185-216.

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