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Tax Evasion Revised: Surprising Experimental Evidence on the Role of Principal Witness Regulations and Differences in Gender Attitudes

Author

Listed:
  • Luigi Mittone
  • Johannes Buckenmaier
  • Eugen Dimant

Abstract

This paper experimentally investigates indirect tax evasion that requires the cooperation of an intermediary. We explore the effectiveness of the introduction of a principal witness regulation as a means to facilitate tax compliance. Reactions show a significant drop in tax compliance that, surprisingly, is vastly different across gender with the effect being mainly driven by women. As a result, women decrease their tax compliance significantly reaching an even lower level than men who in turn do not react to the institutional change.

Suggested Citation

  • Luigi Mittone & Johannes Buckenmaier & Eugen Dimant, 2015. "Tax Evasion Revised: Surprising Experimental Evidence on the Role of Principal Witness Regulations and Differences in Gender Attitudes," CEEL Working Papers 1505, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpce:1505
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    File URL: http://www-ceel.economia.unitn.it/papers/papero15_05.pdf
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    References listed on IDEAS

    as
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    8. James Alm, 2012. "Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 54-77, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    indirect tax evasion; gender difference; contextual sensitivity; reciprocity; principal witness regulation;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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