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Beyond Punishment: a tax compliance experiment with taxpayers in Costa Rica

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  • Benno Torgler

    (University of Basel, Switzerland)

Abstract

Tax compliance experiments have been conducted with students and have focused on the effects of deterrence on tax compliance. However, important insights can be gained looking at alternative instruments. A main purpose of this paper is to conduct an experiment in Costa Rica not with students (exclusively) but with taxpayers, holding traditional factors, such as the probability of penalty and the fine rate, constant and thus analyzing to which extent other factors as fiscal exchange, moral suasion, and positive rewards systematically influence tax compliance. Our findings indicate that these factors increase ceteris paribus the compliance rate.

Suggested Citation

  • Benno Torgler, 2003. "Beyond Punishment: a tax compliance experiment with taxpayers in Costa Rica," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 18(1), pages 27-56, June.
  • Handle: RePEc:ila:anaeco:v:18:y:2003:i:1:p:27-56
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    References listed on IDEAS

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    More about this item

    Keywords

    Tax morale; tax compliance; tax evasion; experiments;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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