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Mental budgeting of the self-employed without personnel

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  • Antonides, Gerrit
  • de Groot, I. Manon

Abstract

We report on three studies on mental budgeting, the first one including qualitative interviews, the second and third developing a mental budgeting scale and its relationship with tax compliance, respectively, in a large survey among self-employed people without personnel. The qualitative study revealed four aspects of mental budgeting: budgeting, making reservations, nonfungibility, and compensation. The quantitative study yielded a 13-item reliable one- dimensional Mental Budgeting scale capturing three of the aspects. Two measures of tax compliance were positively related to mental budgeting, controlling for endogeneity. Female gender, age, and self- reported knowledge of financial issues were positively related to the mental budgeting scale.

Suggested Citation

  • Antonides, Gerrit & de Groot, I. Manon, 2022. "Mental budgeting of the self-employed without personnel," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    • Handle: RePEc:eee:soceco:v:98:y:2022:i:c:s2214804322000271
    DOI: 10.1016/j.socec.2022.101852
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