The Building of Relationship between the Taxation Authority and Tax Collector Based on the Principal-Agent Game Theory

摘要

Despite its importance to tax collection and management efficiency, Grassroots tax collection is an understudied topic. This is partly attributable to the "tax collection and management predicament," which arises because costs of tax collection and management are easier to measure than its benefits. In this study, we develop and test one game theory model between leviers and Tax authorities, this model explains the relationship between leviers and the tax authorities. Our findings have three key implications for public managers. First, the efficiency of tax collection can be improved if tax authorities meet and guide the needs of leviers. Second, mutual transformation on public-private interest poses more challenges and may require additional effort. Third, the mechanism of rewards and punishments has never worked well.