Do students behave like real taxpayers in the lab? Evidence from a real effort tax compliance experiment
Choo, CYL; Fonseca, MA; Myles, GD
Date: 3 October 2015
Journal
Journal of Economic Behavior and Organization
Publisher
Elsevier
Publisher DOI
Abstract
We report on data from a real-effort tax compliance experiment using three subject pools: students, who do not pay income tax; company employees, whose income is reported by their employer; and self-employed taxpayers, who are responsible for filing and payment. While compliance behavior is unaffected by changes in the level of, or ...
We report on data from a real-effort tax compliance experiment using three subject pools: students, who do not pay income tax; company employees, whose income is reported by their employer; and self-employed taxpayers, who are responsible for filing and payment. While compliance behavior is unaffected by changes in the level of, or information about the audit probability, higher fines increase compliance. We find subject pool differences: self-assessed taxpayers are the most compliant, while students are the least compliant. Through a simple framing manipulation, we show that such differences are driven by norms of compliance from outside the lab.
Economics
Faculty of Environment, Science and Economy
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