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On the path-dependence of tax compliance

  • Lisa Bruttel
  • Tim Friehe

This paper presents experimental evidence that tax compliance is path dependent. We show that individuals faced with the same current tax enforcement parameters, will nevertheless choose different compliance if they have faced different tax enforcement parameters in the past. This finding has important policy implications. For instance, legal harmonization in the EU cannot be expected to reliably yield similar behavior in countries with different legal histories.

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File URL: http://www.twi-kreuzlingen.ch/uploads/tx_cal/media/TWI-RPS-059-Bruttel-Friehe-2010-10.pdf
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Paper provided by Thurgauer Wirtschaftsinstitut, Universit�t Konstanz in its series TWI Research Paper Series with number 59.

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Date of creation: 2010
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Handle: RePEc:twi:respas:0059
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