How does information about tax audits affect tax evasion? Firms do increase their tax compliance but this response is not necessarily rational.

Informal taxation is common in developing countries. Ben Olken presents facts on this new system based on 10 surveys around the world.

Do people care about morality when it comes to economic decisions with high financial stakes? An experiment with an Islamic bank's credit card...

Compared to existing income taxes, a value-added tax limits the tax base to information that can easily be monitored, reducing the role of discretion

Big data with big theory reveal how restrictive regional economic policies can lead to lower national productivity and higher inequality

The cost of insurance comes before the benefit. For crop insurance, pay-at-harvest premiums remove this gap, and can increase demand substantially.

Chinese investment in Africa, while less extensive than often assumed, has the potential to generate jobs and development on the continent

Abhijit Banerjee discusses the economics and politics behind the 2016 demonetisation in India.

Even formal firms evade payroll taxes, and workers can be effective monitors of their employers’ reports, with the right incentives.