The paper extends the analysis of the tax evasion considering one of the most relevant Non-Expected Utility Theory: the Cumulative Prospect Theory (CPT) proposed by Kahneman and Tversky (1992). Particular attention is paid to compare the traditional results of Allingham - Sandmo's (1972) model with an alternative approach supported by the Behavioural Economics. The theoretical analysis shows that the CPT applied in the context of tax evasion model supplies more reliable, but less definite, policy conclusions. It overcomes some limitations of the orthodox approach moreover the conclusions of the Allingham - Sandmo's analysis become a special case of the model proposed.

Roberto Dell'Anno, in "ECONOMIA PUBBLICA " 3/2005, pp. , DOI: