TY  - RPRT
        AU  - Doerrenberg, Philipp
AU  - Duncan, Denvil
AU  - Zeppenfeld, Christopher
        TI  - Circumstantial Risk: Impact of Future Tax Evasion and Labor Supply Opportunities on Risk Exposure
        PY  - 2014/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7917
        UR  - https://www.iza.org/publications/dp7917
        AB  - This paper examines whether risk-taking in a lottery depends on the opportunity to respond to the lottery outcome through additional labor effort and/or tax evasion. Previous empirical attempts to answer this question face identification issues due to self-selection into jobs that facilitate tax evasion and labor effort flexibility. We address these identification issues using a laboratory experiment (N = 180). Subjects have the opportunity to invest earned income in a lottery and, depending on randomly assigned treatment states, have the opportunity to respond to the lottery outcome through evasion and/or extra labor effort. We find strong evidence that ex-post access to labor opportunities reduces ex-ante risk willingness while access to tax evasion has no effect on risk behavior. We discuss possible explanations for this result based on the existing literature.
        KW  - tax evasion
KW  - labor supply
KW  - risk behavior
KW  - lab experiment
        ER  -