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Regulatory fit effects on perceived fiscal exchange and tax compliance

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  • Leder, Susanne
  • Mannetti, Lucia
  • Hölzl, Erik
  • Kirchler, Erich

Abstract

Paying taxes can be considered a contribution to the welfare of a society. But even though tax payments are redistributed to citizens in the form of public goods and services, taxpayers often do not perceive many benefits from paying taxes. Information campaigns about the use of taxes for financing public goods and services could increase taxpayers' understanding of the importance of taxes, strengthen their perception of fiscal exchange and consequently also increase tax compliance. Two studies examined how fit between framing of information and taxpayers' regulatory focus affects perceived fiscal exchange and tax compliance. Taxpayers should perceive the exchange between tax payments and provision of public goods and services as higher if information framing suits their regulatory focus. Study 1 supported this hypothesis for induced regulatory focus. Study 2 replicated the findings for chronic regulatory focus and further demonstrated that regulatory fit also affects tax compliance. The results provide further evidence for findings from previous studies concerning regulatory fit effects on tax attitudes and extend these findings to a context with low tax morale.

Suggested Citation

  • Leder, Susanne & Mannetti, Lucia & Hölzl, Erik & Kirchler, Erich, 2010. "Regulatory fit effects on perceived fiscal exchange and tax compliance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 271-277, April.
  • Handle: RePEc:eee:soceco:v:39:y:2010:i:2:p:271-277
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    References listed on IDEAS

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    Cited by:

    1. Stefania Ottone & Ferruccio Ponzano, 2011. "How people perceive the Welfare State: a real-effort experiment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 165-183, June.
    2. Möhlmann, Axel, 2013. "Investor home bias and sentiment about the country benefiting from the tax revenue," Journal of Economic Psychology, Elsevier, vol. 35(C), pages 31-46.
    3. Byung-hill Jun & Myeonghwan Cho & Myung-Ho Park, 2015. "Procedural Fairness and Taxpayers�� Response Evidence from an Experimen," Korean Economic Review, Korean Economic Association, vol. 31, pages 301-326.
    4. Adela Deaconu & Dan Dacian Cuzdriorean, 2016. "Accounting and the state in post-communist Romania," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(1), pages 59-93.
    5. Kirk, Colleen P. & McSherry, Bernard & Swain, Scott D., 2015. "Investing the self: The effect of nonconscious goals on investor psychological ownership and word-of-mouth intentions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 186-194.

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