IDEAS home Printed from https://ideas.repec.org/a/sbr/abstra/v61y2009i1p60-83.html
   My bibliography  Save this article

Is Simple Better? A Conjoint Analysis of the Effects of Tax Complexity on Employee Preferences Concerning Company Pension Plans

Author

Listed:
  • Kay Blaufus
  • Renate Ortlieb

Abstract

We theoretically and empirically analyze the influence of tax complexity on the employee’s decision concerning company pension plans. Our model also considers employer signaling and information intermediation by various actors. The main result of our empirical analysis is that if tax complexity is high, then only a small proportion of the study participants bases their decision on their after-tax return. This proportion increases significantly if tax complexity is low. However, even in a simple tax system, many people do not base their decisions on after-tax returns, but instead follow the advice of an independent product rating agency or a works council representative.

Suggested Citation

  • Kay Blaufus & Renate Ortlieb, 2009. "Is Simple Better? A Conjoint Analysis of the Effects of Tax Complexity on Employee Preferences Concerning Company Pension Plans," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 61(1), pages 60-83, January.
  • Handle: RePEc:sbr:abstra:v:61:y:2009:i:1:p:60-83
    as

    Download full text from publisher

    File URL: http://www.vhb.de/sbr/pdfarchive.html
    Download Restriction: no

    Citations

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


    Cited by:

    1. Sielaff, Christian, 2011. "Steuerkomplexität und Arbeitsangebot: Eine experimentelle Analyse," Discussion Papers 2011/13, Free University Berlin, School of Business & Economics.
    2. Fochmann, Martin & Hemmerich, Kristina & Kiesewetter, Dirk, 2016. "Intrinsic and extrinsic effects on behavioral tax biases in risky investment decisions," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 218-231.
    3. Blaufus, Kay & Milde, Michael, 2018. "Learning to save tax-efficiently: Tax misperceptions and the effect of informational tax nudges on retirement savings," arqus Discussion Papers in Quantitative Tax Research 225, arqus - Arbeitskreis Quantitative Steuerlehre.
    4. Martin Fochmann & Dirk Kiesewetter & Abdolkarim Sadrieh, 2012. "The Biased Effect of Aggregated and Disaggregated Income Taxation on Investment Decisions," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(3), pages 519-545, September.
    5. Fochmann, Martin & Hemmerich, Kristina, 2014. "Real tax effects and tax perception effects in decisions on asset allocation," arqus Discussion Papers in Quantitative Tax Research 156, arqus - Arbeitskreis Quantitative Steuerlehre.
    6. Sell, Sandra & Lopatta, Kerstin & Hundsdoerfer, Jochen, 2010. "Der Einfluss der Besteuerung auf die Rechtsformwahl: Eine Conjoint-Analyse," Discussion Papers 2010/10, Free University Berlin, School of Business & Economics.
    7. Fochmann, Martin & Kiesewetter, Dirk & Sadrieh, Abdolkarim, 2012. "Investment behavior and the biased perception of limited loss deduction in income taxation," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 230-242.
    8. Hundsdoerfer, Jochen & Sielaff, Christian & Blaufus, Kay & Kiesewetter, Dirk & Weimann, Joachim, 2011. "The influence of tax labeling and tax earmarking on the willingness to contribute: A conjoint analysis," arqus Discussion Papers in Quantitative Tax Research 121, arqus - Arbeitskreis Quantitative Steuerlehre.
    9. Hagen Ackermann & Martin Fochmann & Nadja Wolf, 2016. "The Effect of Straight-Line and Accelerated Depreciation Rules on Risky Investment Decisions—An Experimental Study," International Journal of Financial Studies, MDPI, Open Access Journal, vol. 4(4), pages 1-26, October.
    10. 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.
    11. Fochmann, Martin & Hemmerich, Kristina & Kiesewetter, Dirk, 2015. "Intrinsic and extrinsic effects on behavioral tax biases in risky investment decisions," arqus Discussion Papers in Quantitative Tax Research 196, arqus - Arbeitskreis Quantitative Steuerlehre.

    More about this item

    Keywords

    Company Pension Plans; Conjoint Analysis; Employer Signaling; Information Intermediation; Tax Complexity; Tax Simplification;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

    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:sbr:abstra:v:61:y:2009:i:1:p:60-83. 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: (sbr). General contact details of provider: http://edirc.repec.org/data/fbmunde.html .

    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.