A simple mechanism leading to first-order phase transitions in a model of tax evasion

Abstract

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 evaders. We consider a contagion model where the transitions among the compartments are governed by probabilities. Such probabilities represent the possible interactions among the individuals, as well as the government fiscalization. We show by analytical and numerical calculations that the emergence of tax evaders in the population is associated with an active-absorbing nonequilibrium first-order phase transition. In the absorbing phase, only honest tax payers survive in the steady states of the model, and we observe a coexistence of the three subpopulations in the active phase.