  We calculate the dynamics of tax evasion within a multi-agent econophysics
model which is adopted from the theory of magnetism and previously has been
shown to capture the main characteristics from agent-based based models which
build on the standard Allingham and Sandmo approach. In particular, we
implement a feedback of public goods provision on the decision-making of
selfish agents which aim to pursue their self interest. Our results imply that
such a feedback enhances the moral attitude of selfish agents thus reducing the
percentage of tax evasion. Two parameters govern the behavior of selfish
agents, (i) the rate of adaption to changes in public goods provision and (ii)
the threshold of perception of public goods provision. Furtheron we analyze the
tax evasion dynamics for different agent co mpositions and under the feedback
of public goods provision. We conclude that policymakers may enhance tax
compliance behavior via the threshold of perception by means of targeted public
relations.
