Elena D'Agostino (University of Messina)
Marco Alberto De Benedetto (University of Calabria)
Giuseppe Sobbrio (University of Messina)
We analyze how the tax enforcement effectiveness shapes the relationship between compliance and the quality of public expenditure. We find that the probability of detecting evasion positively affects the decision to pay taxes and also the probability that quality is set high if monitoring quality is cheap enough for the taxpayer, whereas its effect on the tax rate remains uncertain.