فرار مالیاتی و بیمه شخصی

This paper examines the effect of an increase in the tax rates on tax evasion in a model where taxpayers self-insure against possible penalties. The analysis shows that the effect depends on the marginal productivity of self-insurance. If the marginal productivity is not too small, an increase in the tax rates leads to greater tax evasion and less tax compliance. This result stands in contrast with the theoretical result in the literature but accords well with empirical findings.