IDEAS home Printed from https://ideas.repec.org/a/spr/digfin/v6y2024i1d10.1007_s42521-023-00092-y.html
   My bibliography  Save this article

Modelling the assessment of taxpayer perception on the fiscal system by a hybrid approach for the analysis of challenging data structures

Author

Listed:
  • Ioana-Florina Coita

    (University of Oradea)

  • Maria Iannario

    (University of Naples Federico II)

  • Alfonso Iodice D’Enza

    (University of Naples Federico II)

  • Codruţa Mare

    (Babes-Bolyai University)

Abstract

Models of tax compliance analysed various factors affecting tax compliant behaviour, from human internal motivations to public perception, risk aversion of penalty and trust in State. For tackling the assessment of taxpayer perception on the fiscal system in a challenging survey based on multiple items, a hybrid statistical model is introduced. In particular, after verifying for each individual the component of feeling and uncertainty in the response process to individual blocks of items intended to measure common latent traits, we synthesized the information in meta-items applying a data-reduction. The meta-items are then modelled according to statistical frameworks for ordered polytomous variables accounting for potential uncertainty in the process of response. Our results—based on a sample of 366 respondent-students attending various Finance courses in Europe—display a certain gender bias in uncertainty levels showing that women feel more uncertain when expressing their opinion on the taxation system. Furthermore they are in accordance with previous studies showing that the trust in State supports voluntary tax compliance and it is driven by clearer laws, transparent communication, perceived good quality of public services and efficient policies for ensuring social welfare of citizens.

Suggested Citation

  • Ioana-Florina Coita & Maria Iannario & Alfonso Iodice D’Enza & Codruţa Mare, 2024. "Modelling the assessment of taxpayer perception on the fiscal system by a hybrid approach for the analysis of challenging data structures," Digital Finance, Springer, vol. 6(1), pages 97-112, March.
    • Handle: RePEc:spr:digfin:v:6:y:2024:i:1:d:10.1007_s42521-023-00092-y
    DOI: 10.1007/s42521-023-00092-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s42521-023-00092-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s42521-023-00092-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Kirchler, Erich & Maciejovsky, Boris & Schneider, Friedrich, 2003. "Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?," Journal of Economic Psychology, Elsevier, vol. 24(4), pages 535-553, August.
    2. Sandmo, Agnar, 1981. "Income tax evasion, labour supply, and the equity--efficiency tradeoff," Journal of Public Economics, Elsevier, vol. 16(3), pages 265-288, December.
    3. Barrafrem, Kinga & Tinghög, Gustav & Västfjäll, Daniel, 2021. "Trust in the government increases financial well-being and general well-being during COVID-19," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    4. Cupák, Andrej & Fessler, Pirmin & Schneebaum, Alyssa, 2021. "Gender differences in risky asset behavior: The importance of self-confidence and financial literacy," Finance Research Letters, Elsevier, vol. 42(C).
    5. Kirchler, Erich & Hoelzl, Erik & Wahl, Ingrid, 2008. "Enforced versus voluntary tax compliance: The "slippery slope" framework," Journal of Economic Psychology, Elsevier, vol. 29(2), pages 210-225, April.
    6. Carl Eckart & Gale Young, 1936. "The approximation of one matrix by another of lower rank," Psychometrika, Springer;The Psychometric Society, vol. 1(3), pages 211-218, September.
    7. Jan Schnellenbach, 2006. "Tax Morale and the Taming of Leviathan," Constitutional Political Economy, Springer, vol. 17(2), pages 117-132, June.
    8. Maria Iannario & Domenico Piccolo, 2016. "A comprehensive framework of regression models for ordinal data," METRON, Springer;Sapienza Università di Roma, vol. 74(2), pages 233-252, August.
    9. Gary S. Becker & William M. Landes, 1974. "Essays in the Economics of Crime and Punishment," NBER Books, National Bureau of Economic Research, Inc, number beck74-1, October.
    10. Heungsun Hwang & Hec Montréal & William Dillon & Yoshio Takane, 2006. "An Extension of Multiple Correspondence Analysis for Identifying Heterogeneous Subgroups of Respondents," Psychometrika, Springer;The Psychometric Society, vol. 71(1), pages 161-171, March.
    11. M. Velden & A. Iodice D’Enza & F. Palumbo, 2017. "Cluster Correspondence Analysis," Psychometrika, Springer;The Psychometric Society, vol. 82(1), pages 158-185, March.
    12. Leder, Susanne & Mannetti, Lucia & Hölzl, Erik & Kirchler, Erich, 2010. "Regulatory fit effects on perceived fiscal exchange and tax compliance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 271-277, April.
    13. 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.
    14. Christoph Kogler & Stephan Muehlbacher & Erich Kirchler, 2015. "Testing the “slippery slope framework” among self-employed taxpayers," Economics of Governance, Springer, vol. 16(2), pages 125-142, May.
    15. Fišar, Miloš & Kubák, Matúš & Špalek, Jiři & Tremewan, James, 2016. "Gender differences in beliefs and actions in a framed corruption experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 69-82.
    16. Kastlunger, Barbara & Dressler, Stefan G. & Kirchler, Erich & Mittone, Luigi & Voracek, Martin, 2010. "Sex differences in tax compliance: Differentiating between demographic sex, gender-role orientation, and prenatal masculinization (2D:4D)," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 542-552, August.
    17. Hammar, Henrik & Jagers, Sverker C. & Nordblom, Katarina, 2009. "Perceived tax evasion and the importance of trust," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 238-245, March.
    18. Maria Iannario & Claudia Tarantola, 2023. "How to Interpret the Effect of Covariates on the Extreme Categories in Ordinal Data Models," Sociological Methods & Research, , vol. 52(1), pages 231-267, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Traxler, Christian, 2010. "Social norms and conditional cooperative taxpayers," European Journal of Political Economy, Elsevier, vol. 26(1), pages 89-103, March.
    2. Dossè Mawussi Djahini‐Afawoubo, 2024. "Understanding tax payment behaviour in the West African Economic and Monetary Union: The role of perceived detection capacity and honesty," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 795-823, March.
    3. Cãƒtãƒlina Cozmei, 2012. "Playing The Fiscal Lottery Game," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(1), pages 511-521, November.
    4. Batrancea, Larissa & Nichita, Anca & Olsen, Jerome & Kogler, Christoph & Kirchler, Erich & Hoelzl, Erik & Weiss, Avi & Torgler, Benno & Fooken, Jonas & Fuller, Joanne & Schaffner, Markus & Banuri, She, 2019. "Trust and power as determinants of tax compliance across 44 nations," Journal of Economic Psychology, Elsevier, vol. 74(C).
    5. Gabriel Leonardo & Jorge Martinez-Vazquez, 2016. "Politicians, bureaucrats, and tax morale: What shapes tax compliance attitudes?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1608, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.
    7. Pántya, József & Kovács, Judit & Kogler, Christoph & Kirchler, Erich, 2016. "Work performance and tax compliance in flat and progressive tax systems," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 262-273.
    8. Sandra Aulia & Haula Rosdiana & Inayati Inayati, 2022. "Trust, Power, and Tax Risk into the “Slippery Slope”: A Corporate Tax Compliance Model," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    9. Nathalie Etchart-vincent & Marisa Ratto & Emmanuelle Taugourdeau, 2024. "Why should I comply with taxes if others don't?: an experimental study testing informational effects," Working Papers hal-04635966, HAL.
    10. Kogler, Christoph & Batrancea, Larissa & Nichita, Anca & Pantya, Jozsef & Belianin, Alexis & Kirchler, Erich, 2013. "Trust and power as determinants of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania and Russia," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 169-180.
    11. Rosaria Lombardo & Ida Camminatiello & Eric J. Beh, 2019. "Assessing Satisfaction with Public Transport Service by Ordered Multiple Correspondence Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 355-369, May.
    12. James Alm & Matthias Kasper, 2020. "Laboratory Experiments," Working Papers 2008, Tulane University, Department of Economics.
    13. Gebhard Kirchgässner, 2011. "Tax Morale, Tax Evasion and the Shadow Economy," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 10, Edward Elgar Publishing.
    14. James Alm, 2019. "What Motivates Tax Compliance?," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 353-388, April.
    15. Fateme Kaghazloo & Ana Clara Borrego, 2022. "Designing a Model of the Factors Affecting Tax professionals' Tax noncompliant behaviour using The ISM Approach," Public Organization Review, Springer, vol. 22(4), pages 1099-1120, December.
    16. Lidija Hauptman & Berislav Zmuk & Ivana Pavic, 2024. "Taxpayers' attitudes toward tax compliance in the Slovenian tax system: differences according to gender, income level and size of settlement," Public Sector Economics, Institute of Public Finance, vol. 48(2), pages 177-201.
    17. Olsen, Jerome & Kasper, Matthias & Enachescu, Janina & Benk, Serkan & Budak, Tamer & Kirchler, Erich, 2018. "Emotions and tax compliance among small business owners: An experimental survey," International Review of Law and Economics, Elsevier, vol. 56(C), pages 42-52.
    18. Colin C Williams & Ioana A Horodnic, 2016. "Tackling the undeclared economy in the European Union: an evaluation of the tax morale approach," Industrial Relations Journal, Wiley Blackwell, vol. 47(4), pages 322-340, July.
    19. Martin Fochmann & Frank Hechtner & Tobias Kölle & Michael Overesch, 2021. "Combating overreporting of deductions in tax returns: prefilling and restricting the deductibility of expenditures," Journal of Business Economics, Springer, vol. 91(7), pages 935-964, September.
    20. Aktaş Güzel, Sonnur & Özer, Gökhan & Özcan, Murat, 2019. "The effect of the variables of tax justice perception and trust in government on tax compliance: The case of Turkey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 80-86.

    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:spr:digfin:v:6:y:2024:i:1:d:10.1007_s42521-023-00092-y. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.