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On the effectiveness of reward-based policies: Are we using the proper concept of tax reward?

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  • Gaetano Lisi

Abstract

Tax reward is considered an important element of fiscal policies for spurring tax compliance. Empirically, however, the effectiveness of reward-based policies is not confirmed. This short theoretical paper suggests that this discrepancy might just be due to the use of a “wrong†concept of tax reward in empirical and experimental works.

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  • Gaetano Lisi, 2022. "On the effectiveness of reward-based policies: Are we using the proper concept of tax reward?," Economics and Business Letters, Oviedo University Press, vol. 11(1), pages 41-45.
    • Handle: RePEc:ove:journl:aid:16054
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/16054
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    References listed on IDEAS

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    1. Fochmann, Martin & Kroll, Eike B., 2014. "The effects of rewards on tax compliance decisions," arqus Discussion Papers in Quantitative Tax Research 163, arqus - Arbeitskreis Quantitative Steuerlehre.
    2. Bruno Frey & Matthias Benz & Alois Stutzer, 2004. "Introducing Procedural Utility: Not Only What, but Also How Matters," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 377-401, September.
    3. Brockmann, Hilke & Genschel, Philipp & Seelkopf, Laura, 2016. "Happy taxation: increasing tax compliance through positive rewards?," Journal of Public Policy, Cambridge University Press, vol. 36(3), pages 381-406, September.
    4. Srinivasan, T. N., 1973. "Tax evasion: A model," Journal of Public Economics, Elsevier, vol. 2(4), pages 339-346.
    5. Josef Falkinger & Herbert Walther, 1991. "Rewards Versus Penalties: on a New Policy against Tax Evasion," Public Finance Review, , vol. 19(1), pages 67-79, January.
    6. Cummings, Ronald G. & Martinez-Vazquez, Jorge & McKee, Michael & Torgler, Benno, 2009. "Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 447-457, June.
    7. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    8. Sandmo, Agnar, 2005. "The Theory of Tax Evasion: A Retrospective View," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(4), pages 643-663, December.
    9. Juan Molero & Francesc Pujol, 2012. "Walking Inside the Potential Tax Evader’s Mind: Tax Morale Does Matter," Journal of Business Ethics, Springer, vol. 105(2), pages 151-162, January.
    10. Fochmann, Martin & Kroll, Eike B., 2016. "The effects of rewards on tax compliance decisions," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 38-55.
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    Cited by:

    1. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.

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