The Occurrence of Tax Amnesties: Theory and Evidence

Bayer, Ralph-C and Oberhofer, Harald and Winner, Hannes (2015) The Occurrence of Tax Amnesties: Theory and Evidence. Journal of Public Economics, 125 (1). pp. 70-82. ISSN 0047-2727

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This paper presents a theoretical model and empirical evidence to explain the occurrence of tax amnesties. We treat amnesties as endogenous, resulting from a strategic game between many taxpayers discounting future payments from punishment and a government that balances costs and benefits of amnesty programs. From the model we derive hypotheses about the factors that should influence the occurrence of tax amnesties. To test these predictions empirically, we rely on amnesty information from US States between 1981 and 2011. In line with the theoretical model, our empirical findings suggest that the likelihood of amnesties is mainly driven by a government's fiscal requirements and the taxpayers' expectations on future amnesties.

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription.
Keywords: Tax amnesties; Tax evasion
Divisions: Departments > Volkswirtschaft > Internationale Wirtschaft
Version of the Document: Accepted for Publication
Depositing User: Gertraud Novotny
Date Deposited: 08 Aug 2017 10:54
Last Modified: 07 Sep 2017 09:21
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