Income tax evasion dynamics: Evidence from an agent-based econophysics model

Pickhardt, Michael; Seibold, G.

doi:10.1016/j.joep.2013.01.011

Cited by 35 publications

(36 citation statements)

References 39 publications

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“…The examination of cell values outside of the lattice bounds are treated as m empty making no contribution to the residential satisfaction as this function is not called on behalf of empty cells. This state determination for each cell based upon the adjacency of the grid is the main motivation for the comparison to the Ising model in the previous research [25,26].…”

Section: Schelling Model Outlinementioning

confidence: 99%

Examining the Schelling Model Simulation through an Estimation of Its Entropy

Mantzaris

Marich

Halfman

2018

Entropy

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The Schelling model of segregation allows for a general description of residential movements in an environment modeled by a lattice. The key factor is that occupants change positions until they are surrounded by a designated minimum number of similarly labeled residents. An analogy to the Ising model has been made in previous research, primarily due the assumption of state changes being dependent upon the adjacent cell positions. This allows for concepts produced in statistical mechanics to be applied to the Schelling model. Here is presented a methodology to estimate the entropy of the model for different states of the simulation. A Monte Carlo estimate is obtained for the set of macrostates defined as the different aggregate homogeneity satisfaction values across all residents, which allows for the entropy value to be produced for each state. This produces a trace of the estimated entropy value for the states of the lattice configurations to be displayed with each iteration. The results show that the initial random placements of residents have larger entropy values than the final states of the simulation when the overall homogeneity of the residential locality is increased.

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Section: Schelling Model Outlinementioning

confidence: 99%

Examining the Schelling Model Simulation through an Estimation of Its Entropy

Mantzaris

Marich

Halfman

2018

Entropy

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“…One potential direction for this revolution is the development of an agent-based econophysics. This multi-disciplinary field can indeed help scholars to better understand the complexity of economic systems but it can also produce very useful tools for policy-makers such as, for example, the work of Pickhardt and Seibold [53] which gave a realistic description of that income tax evasion dynamics by modelling it through an "agent-based econophysics model" based on Ising model of ferromagnetism. The following section emphasizes the contributions of scientific the Chinese community to econophysics.…”

Section: Unifying Perspective On Economic Complexitymentioning

confidence: 99%

Toward a Unifying Perspective on Economic Complexity: The Contribution of Chinese Econophysics Community

Schınckus¹

2018

TEL

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Recent years have witnessed a series of economic problems and financial crises, the recent subprime debacle being one of the worst. All these events called traditional economics into question and new perspectives have been developed to take into account the complexity of economic systems. This essay aims at contributing to a better understanding of a new trend labeled econophysics through two points: 1) a discussion on the conceptual links between statistical econophysics and agent-based econophysics; and 2) an overview of works dealing with these links that interestingly, emphasize the importance of econophysics in China.

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“…Econophysics models from statistical mechanics have also been considered, e.g. Ising models have been used to model different social behavior and investigate thresholds for efficient audits (Zaklan et al 2009;Pickhardt and Seibold 2014;Zaklan et al 2008). More recently, agent based models of tax compliance with varying social network structure have been analyzed.…”

Section: Tax Evasion Modelingmentioning

confidence: 99%

Detecting tax evasion: a co-evolutionary approach

et al. 2016

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We present an algorithm that can anticipate tax evasion by modeling the co-evolution of tax schemes with auditing policies. Malicious tax non-compliance, or evasion, accounts for billions of lost revenue each year. Unfortunately when tax administrators change the tax laws or auditing procedures to eliminate known fraudulent schemes another potentially more profitable scheme takes it place. Modeling both the tax schemes and auditing policies within a single framework can therefore provide major advantages. In particular we can explore the likely forms of tax schemes in response to changes in audit policies. This can serve as an early warning system to help focus enforcement efforts. In addition, the audit policies can be fine tuned to help improve tax scheme detection. We demonstrate our approach using the iBOB tax scheme and show it can capture the co-evolution between tax evasion and audit policy. Our experiments shows the expected oscillatory behavior of a biological co-evolving system.

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Income tax evasion dynamics: Evidence from an agent-based econophysics model

Cited by 35 publications

References 39 publications

Examining the Schelling Model Simulation through an Estimation of Its Entropy

Examining the Schelling Model Simulation through an Estimation of Its Entropy

Toward a Unifying Perspective on Economic Complexity: The Contribution of Chinese Econophysics Community

Detecting tax evasion: a co-evolutionary approach

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