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In this paper we present a simplified model of a proportional taxation system where citizens decide whether to pay taxes or evade them. We initially derive a dynamic equation for the fraction of evaders and then present both its critical…

Physics and Society · Physics 2022-06-17 Alessio Emanuele Biondo , Giulio Burgio , Alessandro Pluchino , Damiano Puglisi

Microscopic models describing a whole of economic interactions in a closed society are considered. The presence of a tax system combined with a redistribution process is taken into account, as well as the occurrence of tax evasion. In…

General Finance · Quantitative Finance 2017-01-11 M. L. Bertotti , G. Modanese

We investigate the effect of tax evasion on the income distribution and the inequality index of a society through a kinetic model described by a set of nonlinear ordinary differential equations. The model allows to compute the global…

General Finance · Quantitative Finance 2014-08-25 Maria Letizia Bertotti , Giovanni Modanese

This paper presents a simple agent-based model of an economic system, populated by agents playing different games according to their different view about social cohesion and tax payment. After a first set of simulations, correctly…

General Finance · Quantitative Finance 2018-09-24 L. S. Di Mauro , A. Pluchino , A. E. Biondo

In this work we study the problem of tax evasion on a fully-connected population. For this purpose, we consider that the agents may be in three different states, namely honest tax payers, tax evaders and undecided, that are individuals in…

Physics and Society · Physics 2014-08-13 Nuno Crokidakis

We develop a model of tax evasion based on the Ising model. We augment the model using an appropriate enforcement mechanism that may allow policy makers to curb tax evasion. With a certain probability tax evaders are subject to an audit. If…

General Finance · Quantitative Finance 2008-12-02 Georg Zaklan , Frank Westerhoff , Dietrich Stauffer

We present here a general framework, expressed by a system of nonlinear differential equations, suitable for the modelling of taxation and redistribution in a closed (trading market) society. This framework allows to describe the evolution…

Physics and Society · Physics 2011-09-06 Maria Letizia Bertotti , Giovanni Modanese

We present a discrete-time dynamic model of income tax evasion. The model is solved exactly in the case of a single taxpayer and shown to have some realistic properties, including avoiding the Yitzhaki paradox. The extension to an…

Economics · Quantitative Finance 2015-08-12 Richard Vale

In this work we study a model of tax evasion. We considered a fixed population divided in three compartments, namely honest tax payers, tax evaders and a third class between the mentioned two, which we call \textit{susceptibles} to become…

Physics and Society · Physics 2017-05-24 Rafael M. Brum , Nuno Crokidakis

We formulate a flexible micro-to-macro kinetic model which is able to explain the emergence of income profiles out of a whole of individual economic interactions. The model is expressed by a system of several nonlinear differential…

Economics · Quantitative Finance 2016-11-28 Maria Letizia Bertotti , Giovanni Modanese

We study the impact of contact heterogeneity on epidemic dynamics. A system characterized by multiple susceptible populations is considered. The description of the spread of an infectious disease is obtained through the study of a system of…

Physics and Society · Physics 2021-11-11 Andrea Medaglia , Mattia Zanella

In this work we study a dynamics of tax evasion. We considered a fully-connected population divided in three compartments, namely honest tax payers, tax evaders and susceptibles, a class that is composed by honest tax payers that can become…

Physics and Society · Physics 2022-09-26 Nuno Crokidakis

This paper introduces a novel stochastic framework for modelling tax evasion dynamics by extending the deterministic model of Bertotti and Modanese (2018) through the use of Piecewise Deterministic Markov Processes (PDMPs). A key limitation…

Physics and Society · Physics 2026-05-26 Jonas Mayr , Amira Meddah , Irene Tubikanec

We propose a kinetic model to describe the dynamical evolution of wealth and knowledge in national and global markets, starting from a microscopic description of individual interactions. The model is built upon interaction rules that…

Physics and Society · Physics 2026-02-24 Marzia Bisi , Martina Conte , Maria Groppi

We study a system of $N$ agents, whose wealth grows linearly, under the effect of stochastic resetting and interacting via a tax-like dynamics -- all agents donate a part of their wealth, which is, in turn, redistributed equally among all…

Physics and Society · Physics 2022-05-11 Ion Santra

We investigate an inhomogeneous Ising model in the context of tax evasion dynamics where different types of agents are parametrized via local temperatures and magnetic fields. In particular, we analyse the impact of backauditing and…

Physics and Society · Physics 2015-06-05 G. Seibold , M. Pickhardt

Tax evasion, usually the largest component of an informal economy, is a persistent challenge over history with significant socio-economic implications. Many socio-economic studies investigate its dynamics, including influencing factors, the…

Information Retrieval · Computer Science 2025-09-03 Teddy Lazebnik , Labib Shami

We discuss a family of models expressed by nonlinear differential equation systems describing closed market societies in the presence of taxation and redistribution. We focus in particular on three example models obtained in correspondence…

General Finance · Quantitative Finance 2014-03-19 Maria Letizia Bertotti , Giovanni Modanese

This paper presents a dynamic model to study the impact on the economic outcomes in different societies during the Malthusian Era of individualism (time spent working alone) and collectivism (complementary time spent working with others).…

Physics and Society · Physics 2016-07-04 Kartik Ahuja , Mihaela van der Schaar , William R. Zame

We develop a mathematical model to describe the persistence of rule-breaking behaviors in societies, such as traffic violations, disregard for legal restrictions and other forms of noncompliance. Using a replicator-type dynamics with…

Physics and Society · Physics 2026-05-27 Nuno Crokidakis
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