IDEAS home Printed from https://ideas.repec.org/a/kap/itaxpf/v10y2003i2p189-203.html
   My bibliography  Save this article

Behavioral Public Finance: Tax Design As Price Presentation

Author

Listed:
  • Krishna, Aradhna
  • Slemrod, Joel

Abstract

In this essay we review the evidence from marketing research about price presentation of consumer products and discuss how these lessons have been applied--consciously or unconsciously--in the design of the U.S. tax system. Our perspective is that, in most situations, the designers of the tax system attempt to minimize the perceived burden of any given amount of tax collections. We allow, though, that in certain situations an additional goal is to maximize the perceived burden of others. We also investigate how, when the objective is to encourage a particular activity, price presentation may enhance the achievement of that goal for a given amount of tax subsidy. We conclude by addressing the ethical and normative implications of price presentation in the tax system. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Krishna, Aradhna & Slemrod, Joel, 2003. "Behavioral Public Finance: Tax Design As Price Presentation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(2), pages 189-203, March.
  • Handle: RePEc:kap:itaxpf:v:10:y:2003:i:2:p:189-203
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0927-5940/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

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

    Citations

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


    Cited by:

    1. Sokolovska, Olena & Sokolovskyi, Dmytro, 2015. "Analysis of dependence of tax behavior on macroeconomic factors: the case of OECD countries," MPRA Paper 69059, University Library of Munich, Germany, revised Jan 2016.
    2. Rupert Sausgruber & Jean-Robert Tyran, 2008. "Tax Salience, Voting, and Deliberation," Discussion Papers 08-21, University of Copenhagen. Department of Economics.
    3. Salmai Qari & Kai Konrad & Benny Geys, 2012. "Patriotism, taxation and international mobility," Public Choice, Springer, vol. 151(3), pages 695-717, June.
    4. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    5. Blumkin, Tomer & Ruffle, Bradley J. & Ganun, Yosef, 2012. "Are income and consumption taxes ever really equivalent? Evidence from a real-effort experiment with real goods," European Economic Review, Elsevier, vol. 56(6), pages 1200-1219.
    6. Stanislav KLAZAR, 2010. "Behavioral Consequences of Optimal Tax Structure - Empirical Analysis," European Financial and Accounting Journal, University of Economics, Prague, vol. 2010(1), pages 51-63.
    7. Werner Gueth & Rupert Sausgruber, 2004. "Tax Morale and Optimal Taxation," Papers on Strategic Interaction 2004-12, Max Planck Institute of Economics, Strategic Interaction Group.
    8. Joel Slemrod, 2010. "Old George Orwell Got It Backward: Some Thoughts on Behavioral Tax Economics," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 15-33, March.
    9. Rupert Sausgruber & Jean-Robert Tyran, 2005. "Testing the Mill hypothesis of fiscal illusion," Public Choice, Springer, vol. 122(1), pages 39-68, January.
    10. Goldin, Jacob, 2015. "Optimal tax salience," Journal of Public Economics, Elsevier, vol. 131(C), pages 115-123.
    11. Doyle Jr., Joseph J. & Samphantharak, Krislert, 2008. "$2.00 Gas! Studying the effects of a gas tax moratorium," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 869-884, April.
    12. Tomer Blumkin & Ehud Menirav, 2009. "Framing the rabbit to snare the votes," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(4), pages 603-634, May.
    13. John M. Foster, 2014. "Tax Exporting and the Business Share of Sales Tax Levies," Public Budgeting & Finance, Wiley Blackwell, vol. 34(4), pages 80-99, December.
    14. Blaufus, Kay & Bob, Jonathan & Hundsdoerfer, Jochen & Kiesewetter, Dirk & Weimann, Joachim, 2013. "Decision heuristics and tax perception – An analysis of a tax-cut-cum-base-broadening policy," Journal of Economic Psychology, Elsevier, vol. 35(C), pages 1-16.
    15. Sausgruber, Rupert & Tyran, Jean-Robert, 2011. "Are we taxing ourselves?," Journal of Public Economics, Elsevier, vol. 95(1), pages 164-176.
    16. Asmus Olsen, 2013. "The politics of digits: evidence of odd taxation," Public Choice, Springer, vol. 154(1), pages 59-73, January.
    17. Sokolovskyi, Dmytro, 2018. "Macroeconomic indicators of determination on tax behaviour of OECD countries," MPRA Paper 84002, University Library of Munich, Germany.
    18. Werner Güth & Rupert Sausgruber, 2008. "Voting between tax regimes to fund a public good," Economics of Governance, Springer, vol. 9(4), pages 287-303, October.
    19. Robert Ullmann & Christoph Watrin, 2008. "Comparing Direct and Indirect Taxation: The Influence of Framing on Tax Compliance," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 5(1), pages 23-56, June.

    More about this item

    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:kap:itaxpf:v:10:y:2003:i:2:p:189-203. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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.

    We have no references for this item. You can help adding them by using 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.