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By Paul Frijters

Why are humans dependable? How do teams shape and the way do they carry incentives for his or her participants to abide through team norms? before, economics has purely been in a position to in part solution those questions. during this groundbreaking paintings, Paul Frijters offers a brand new unified idea of human behaviour. to take action, he comprises complete but tractable definitions of affection and tool, and the dynamics of teams and networks, into the conventional mainstream fiscal view. the result's an more desirable view of human societies that however keeps the pursuit of self-interest at its center. This publication offers a digestible yet complete idea of our socioeconomic method, which condenses its big complexity into simplified representations. the end result either illuminates humanity's background and indicates methods ahead for rules this day, in parts as diversified as poverty relief and tax compliance.

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In the present day, compliance is not just about low levels of tax evasion, which is illegal, but also about low levels of tax avoidance, which is not illegal but can still be socially frowned upon. Introduction and preview 23 It is worth repeating that tax compliance is not a peripheral issue in the workings of modern economies. 16 Returning to the original policy question, what recommendations should be given to those wishing to increase tax compliance? While a student naïvely following the mainstream economic textbook story would opt for an increase in monitoring and punishment of noncompliers, the story in this book would advise that only as an initial step.

The ideal theory The approach I take is positivist and empirical in the sense that I look for consistent stories that can describe and predict phenomena of interest. I will thus be looking for a description of loyalty that is descriptive Introduction and preview 31 of loyalty relations seen in reality, as well as predictive of the means by which one can engender loyalty in individuals and whole societies. Similarly, I will be looking for stories that describe and predict group formation, that describe and predict power dynamics, and that describe and predict network formation.

The ability to fit the core phenomena originally targeted by the concept, and the ability to fit in with other theories used for other problems, that have guided my selection of theories for each core concept. Selecting core concepts from the social science literature Once one has hit upon a set of core concepts with associated core phenomena one wants those concepts to explain, the processes of analog reasoning, pragmatism, and positivism explained above can be used. But how are the core concepts themselves chosen?

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