Does Tax Evasion Misallocate Resources?

Abstract

This study examined the issue of whether tax evasion misallocates resources. Microsoft Copilot, an artificial intelligence chatbot, was used to generate a two-part essay. In part 1, it summarized some arguments to justify the position that tax evasion misallocates resources. In part 2, it summarized some arguments to justify the position that tax evasion does not misallocate resources. The essay generated some good arguments, pro and con. One positive aspect of the present study is that it showed how artificial intelligence can be used as a tool for scholarly research. It can be used as a shortcut to generate information that scholarly writers might otherwise overlook. It is a great time-saver, since the author did not have to spend hours or days searching for arguments on the pros and cons. The AI-generated essay may be used as a starting point for further conversation on this topic.

Keywords: tax evasion, ethics, tax morale, artificial intelligence, Copilot

JEL Classification: D61, H21, H23, H26