A Contribution of Expected Utility Theory in Taxpayers' Behavior Modeling

Authors

  • Farid Ameur Ecole Mohammadia d'Ingénieurs, Université Mohammed V
  • Mohamed Tkiouat Ecole Mohammadia d'Ingénieurs, Université Mohammed V

Abstract

In this paper, we analyze the attitudes of taxpayers regarding tax system. We propose an approach which combines between theory and practice. In the first step, we present a normative approach; based on a theoretical study. In order to produce an empirical knowledge of an aspect of reality we present a descriptive approach; based on a survey of different categories of taxpayers. We have released some conditions of the model of Expected Utility (EU) and we have introduced a new parameter reflecting the efficiency of tax control. Previous studies are based on a maximal efficiency tax control (100%) which is a particular case of our model. We found that for Moroccan case, the fraud is related to the size of companies; it's more important in the big companies than small and medium enterprises. The findings will help tax authorities to achieve their goals in fighting tax fraud.

Keywords: Expected Utility, Prospect Theory, Underground Economy, Tax Fraud, Tax Authority, Tax Audit, Tax Compliance, Taxpayers,

JEL Classifications: C5, H3.

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Author Biographies

Farid Ameur, Ecole Mohammadia d'Ingénieurs, Université Mohammed V

Farid AMEUR earned his Engineering degree (2004) from EMI (École Mohammadia d'Ingénieurs) Morocco.  He  is  a  PhD  student  in  Studies  and  Research  Laboratory in  Applied  Mathematics  (LERMA)    in  Mohammadia  School  of  Engineering.  He is Charge of tax audit at the ministry of economic and finance of the Kingdom of Morocco. His main areas of research include applied mathematics, artificial intelligence, tax law, finance engineering, agent based modeling and simulation.

Mohamed Tkiouat, Ecole Mohammadia d'Ingénieurs, Université Mohammed V

Mohamed TKIOUAT earned his Doctorate of Mathematic Sciences (1991) from the Univertsité Libre de Bruxelles (ULB) on Markovian and semi-Markovian models and applications, Belgium.  Previously,  he  completed  his  third cycle  thesis  (1980)  in  Operations  Research  at Faculté  des  Sciences  de  Rabat on  perturbed  Markovian  chains  models  and  application  to  hydropower management,  prepared  at  INRIA  France.  He is a Professor at Ecole Mohammadia d'Ingénieurs, Université Mohamed V Agdal à Rabat. His main areas of research include Markovian models and applications to reliability and finance, risk management and multi-agent games theory models.

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Published

2016-07-23

How to Cite

Ameur, F., & Tkiouat, M. (2016). A Contribution of Expected Utility Theory in Taxpayers’ Behavior Modeling. International Journal of Economics and Financial Issues, 6(3), 1217–1224. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/2411

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