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On the External Validity of Laboratory Tax Compliance Experiments

Author

Listed:
  • James Alm

    (Department of Economics, Tulane University)

  • Kim M. Bloomquist

    (Office of Research, U.S. Internal Revenue Service)

  • Michael McKee

    (Department of Economics, Appalachian State University)

Abstract

An essential issue for laboratory experiments to inform policy debates is the "external validity" of the experimental results; that is, does behavior in the laboratory apply to behavior that occurs in the naturally occurring world? We examine this issue of external validity in the specific context of laboratory experiments on tax compliance, using two different types of evidence. We find that the behavioral patterns of subjects in the laboratory conform to that of individuals making a similar decision in naturally occurring settings. We also find that the behavioral responses of students are largely the same as non-students in identical experiments.

Suggested Citation

  • James Alm & Kim M. Bloomquist & Michael McKee, 2015. "On the External Validity of Laboratory Tax Compliance Experiments," Working Papers 1512, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:1512
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    More about this item

    Keywords

    marriage; experimental methods; external validity; tax compliance;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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