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Tax Framing and Productivity: evidence based on the strategy elicitation

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  • Hamza Umer

    (Graduate School of Economics, Waseda University)

Abstract

People usually don't like to pay income tax and can behave differently when the wage is defined with and without tax deductions. This aspect of human behavior has been tested by several researchers only with the help of the direct method in the lab, and the description of wage has been found to have significant influence on the human behavior. This paper is one of the first one to use the strategy elicitation to explore impacts of tax and no-tax frames on the productivity and willingness to work. The results of the experiment show that the productivity is significantly higher under the tax as compared to the no-tax frame, while no significant differences in the subject's willingness to work exist between the two frames.

Suggested Citation

  • Hamza Umer, 2019. "Tax Framing and Productivity: evidence based on the strategy elicitation," Economics Bulletin, AccessEcon, vol. 39(1), pages 33-40.
    • Handle: RePEc:ebl:ecbull:eb-18-00779
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    References listed on IDEAS

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    Cited by:

    1. Umer, Hamza, 2020. "Revisiting generosity in the dictator game: Experimental evidence from Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).

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    More about this item

    Keywords

    frame; direct method; strategy elicitation; productivity;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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