I have been struggling to find a proper way to create a timeline, which I could finally do with this modification. Usually while creating a timeline the problem was that I could not add a text to explain each date clearly with a longer text. I modified and further utilized @Zoe Gagnon's latex script. Please feel free to see the following:
\documentclass{article}
\usepackage{tikz}
\usetikzlibrary{snakes}
\usepackage{rotating}
\begin{document}
\begin{center}
\begin{tikzpicture}
% draw horizontal line
\draw (-5,0) -- (6,0);
% draw vertical lines
\foreach \x in {-5,-4,-3,-2, -1,0,1,2}
\draw (\x cm,3pt) -- (\x cm,-3pt);
% draw nodes
\draw (-5,0) node[below=3pt] {$ 0 $} node[above=3pt] {$ $};
\draw (-4,0) node[below=3pt] {$ 1 $} node[above=3pt] {$\begin{turn}{45}
All individuals vote
\end{turn}$};
\draw (-3,0) node[below=3pt] {$ 2 $} node[above=3pt] {$\begin{turn}{45}
Policy vector decided
\end{turn}$};
\draw (-2,0) node[below=3pt] {$ 3 $} node[above=3pt] {$\begin{turn}{45} Becoming a bureaucrat \end{turn} $};
\draw (-1,0) node[below=3pt] {$ 4 $} node[above=3pt] {$\begin{turn}{45} Bureaucrats' effort choice \end{turn}$};
\draw (0,0) node[below=3pt] {$ 5 $} node[above=3pt] {$\begin{turn}{45} Tax evasion decision made \end{turn}$};
\draw (1,0) node[below=3pt] {$ 6$} node[above=3pt] {$\begin{turn}{45} $p(x_{t})$ tax evaders caught \end{turn}$};
\draw (2,0) node[below=3pt] {$ 7 $} node[above=3pt] {$\begin{turn}{45} $q_{t}$ shirking bureaucrats \end{turn}$};
\draw (3,0) node[below=3pt] {$ $} node[above=3pt] {$\begin{turn}{45} Public service provided \end{turn} $};
\end{tikzpicture}
\end{center}
\end{document}
Longer texts are not allowed, unfortunately. It will look like this: