Domestic Violence: A Non-random Affair

In this paper, we develop and estimate a model of violence between romantically linked men and women. Physical violence is viewed as both a source of direct gratification and as an instrument for controlling the victim's behavior. Our model is a Stackleberg type model in which the assailant maximizes expected utility subject to the stochastic reaction function of the victim. Our model is estimated by a bounded-?influence regression technique because the process generating violence appears to lead to a heavy-tailed error distribution. Our empirical results suggest that increases in the assailants(i.e. the male's) income serve to increase violence, while increases in the proportion of the year that he is employed serve to decrease violence. Further, the employment effect is larger than the income effect. By way of contrast, our results suggest that the effect of a change in the female's employment or income depends heavily onher economic status relative to the male's. Finally, we find that improvements in the female's opportunites outside the relationship significantly reduce the level of violence.

Tax Compliance: An Investigation Using Individual TCMP Data

In this paper, we analyze the tax compliance behavior of US taxpayers by using a 1979 data set that combines information from a random sample of individual tax returns each of which has been thoroughly audited, IRS administrative records, and sociodemographic data from the Census. We find evidence that both audits and tax code provisions affect compliance. However, the effects are significant for only the low and high income groups. Interestingly, previous research has shown that these groups also participate most actively in underground economic activities, the income from which is not reported on any tax returns. Our results for audits suggest that the "ripple" or general deterrent effect of audits may be many times larger than the direct revenue yield of audits for high income taxpayers. Our results for allowable subtractions from income imply that the 1986 Tax Reform Act changes to lower allowable subtractions may have procompliance effects.

A Structural Equation Model for Tax Compliance and Auditing

In this paper. we estimate a three equation model for taxpayers' reported income and tax liability and for the probability of an audit. Our work differs from previous studies in that our dependent variables in the compliance equations are taxpayer reports rather than a variable related to auditor estimates of noncompliance and in that we estimate a structural equation for audits. We find that audits stimulate compliance although the effect is not large and is not statistically significant for all groups. Audits are more effective at inducing accurate reporting of subtractions from income than of income. Reduced-form results suggest that IRS activities other than audits have significant compliance effects. Results for the sociodemographic variables are interesting and help to explain some seemingly incongruous findings in the literature. We find compliance to be higher, if anything. in areas with less educated and older taxpayers, a large proportion of households headed by females. and a mostly native born population.

Domestic Violence: A Nonrandom Affair.

In this paper, the authors develop and estimate a model of domestic violence. They extend a noncooperative model of the family to include violence as a source of gratification and an instrument for controlling behavior. The authors estimate the model by robust methods since the violence process appears to have a heavy-tailed, nonnormal error distribution. They find that the properties of the equilibria depend on family income. For low/middle income families, the authors' results indicate an equilibrium in which one person's reservation utility constraint is binding, whereas for higher income families both individuals may gain from the relationship. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.