IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v31y2010i3p400-404.html
   My bibliography  Save this article

Perceptions and outcomes of a fiscal bonus: Framing effects on evaluations and usage intentions

Author

Listed:
  • Lozza, Edoardo
  • Carrera, Sonia
  • Bosio, A. Claudio

Abstract

Is presenting a fiscal bonus as an income increase (a gain) the same as presenting it as a tax rebate (a loss reduction)? This paper aims to answer this question with two studies. Study 1 is a survey carried out in Italy to explore citizens' perceptions of a fiscal reform introduced in 2005. It shows both effects imputable to the methods used to describe the bonus and differences between respondents belonging to different occupational groups. But it does not allow disentangling these factors. Study 2 aims to investigate whether and how (1) the frame used to describe a fiscal bonus and (2) taxpayers' occupational status, influence their evaluation of this tax reduction and the uses they intend to make of it. To this end, 252 participants belonging to different occupational groups were submitted to two between-subject framing conditions (the bonus being described as a reduced loss or as a gain). They were then asked to evaluate the bonus' importance for their personal wealth and to state how they intended to use it. Results demonstrate that the frame, rather than the occupational status of the respondent, influences taxpayers' responses to the bonus. Respondents attached a higher importance to the bonus and were keener to save it when it was described as a loss reduction, compared to it being presented as a gain. These results are interpreted with reference to Prospect Theory, producing new insights into the processes through which framing can affect fiscal policy evaluations. The study is also relevant from a pragmatic perspective, as it shows that the way fiscal policy is communicated can be decisive for the achievement of economic and political goals.

Suggested Citation

  • Lozza, Edoardo & Carrera, Sonia & Bosio, A. Claudio, 2010. "Perceptions and outcomes of a fiscal bonus: Framing effects on evaluations and usage intentions," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 400-404, June.
  • Handle: RePEc:eee:joepsy:v:31:y:2010:i:3:p:400-404
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-4870(10)00015-2
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    2. Ashby, Julie S. & Webley, Paul & Haslam, Alexander S., 2009. "The role of occupational taxpaying cultures in taxpaying behaviour and attitudes," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 216-227, April.
    3. Matthew D. Shapiro & Joel Slemrod, 2003. "Consumer Response to Tax Rebates," American Economic Review, American Economic Association, vol. 93(1), pages 381-396, March.
    4. Epley, Nicholas & Gneezy, Ayelet, 2007. "The framing of financial windfalls and implications for public policy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(1), pages 36-47, February.
    5. Chang, Otto H. & Nichols, Donald R. & Schultz, Joseph J., 1987. "Taxpayer attitudes toward tax audit risk," Journal of Economic Psychology, Elsevier, vol. 8(3), pages 299-309, September.
    6. Robben, Henry S. J. & Webley, Paul & Weigel, Russell H. & Warneryd, Karl-Erik & Kinsey, Karyl A. & Hessing, Dick J. & Martin, Francisco Alvira & Elffers, Henk & Wahlund, Richard & Van Langenhove, Luk, 1990. "Decision frame and opportunity as determinants of tax cheating : An international experimental study," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 341-364, September.
    7. Kirchler, Erich & Maciejovsky, Boris, 2001. "Tax compliance within the context of gain and loss situations, expected and current asset position, and profession," Journal of Economic Psychology, Elsevier, vol. 22(2), pages 173-194, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:ecolec:v:142:y:2017:i:c:p:295-305 is not listed on IDEAS
    2. Cullis, John & Jones, Philip & Lewis, Alan & Castiglioni, Cinzia & Lozza, Edoardo, 2015. "Do poachers make harsh gamekeepers? Attitudes to tax evasion and to benefit fraud," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 124-131.
    3. Blaufus, Kay & Möhlmann, Axel, 2012. "Security returns and tax aversion bias: Behavioral responses to tax labels," arqus Discussion Papers in Quantitative Tax Research 133, arqus - Arbeitskreis Quantitative Steuerlehre.
    4. Blaufus, Kay & Hechtner, Frank & Möhlmann, Axel, 2014. "The effect of tax preparation expenses for employees: Evidence from Germany," arqus Discussion Papers in Quantitative Tax Research 157, arqus - Arbeitskreis Quantitative Steuerlehre.
    5. Iannario, Maria & Manisera, Marica & Zuccolotto, Paola, 2015. "The treatment of don't know responses in the consumers' perceptions: a survey in the agri-food sector," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202704, European Association of Agricultural Economists.
    6. Maria Iannario & Marica Manisera & Paola Zuccolotto, 2017. "Treatment of “don’t know” responses in the consumers’ perceptions about sustainability in the agri-food sector," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 765-778, March.
    7. John Yinger & Phuong Nguyen-Hoang, 2015. "The Behavioral Impacts of Poverty Tax Relief: Salience or Framing?," Center for Policy Research Working Papers 186, Center for Policy Research, Maxwell School, Syracuse University.
    8. Renz, André, 2016. "Die Relevanz von Replikationen in der experimentellen Steuerforschung: Eine Replikationsstudie zu Wahrnehmungsverzerrungen bei Subventionen," arqus Discussion Papers in Quantitative Tax Research 202, arqus - Arbeitskreis Quantitative Steuerlehre.

    More about this item

    Keywords

    Framing Rebate Taxation;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:31:y:2010:i:3:p:400-404. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/joep .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.