Combining Psychology and Economics in the Analysis of Compliance: From Enforcement to Cooperation
AbstractIn tax compliance research, there has been a significant shift in research paradigms, from an emphasis on enforcement to approaches that stress cooperation. In this paper, we trace this shift. We first describe the major “actors” in the tax compliance game and their complex interactions. Second, we examine various perspectives on the compliance decisions of individuals, starting with “economic” factors and then moving to factors based more on “psychology”, like social norms, fairness, and social interactions. Third, we present the “slippery slope” framework as a unifying framework. We conclude with recommendations based on this framework that have been shown to improve compliance.
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Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 42 (2012)
Issue (Month): 2 (September)
Tax evasion; behavioral economics; tax morale; intrinsic motivation; slippery slope framework;
Other versions of this item:
- Erich Kirchler & Stephan Muehlbacher & Katharina Gangl & Eva Hofmann & Christoph Kogler & Maria Pollai & James Alm, 2012. "Combining Psychology and Economics in the Analysis of Compliance: From Enforcement to Cooperation," Working Papers 1212, Tulane University, Department of Economics.
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
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