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Compliance cost estimates: Survey non-response and temporal framing effects

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  • Eichfelder, Sebastian

Abstract

Due to empirical research, tax and accounting compliance costs are a considerable burden for private businesses. However, cost estimates may be biased due to survey nonresponse and questionnaire framing effects. This paper investigates the impact of both aspects on the estimated cost burden. I do not find significant evidence for a non-response bias. By contrast, my results indicate that framing effects regarding the temporal dimension of cost measurement (temporal framing effects) might alter cost estimates by up to 68 percent downwards (respectively 211 percent upwards). There is also evidence that temporal framing effects are more relevant for small self-employed businesses with limited information capacities and accounting obligations as well as for internal cost burdens.

Suggested Citation

  • Eichfelder, Sebastian, 2013. "Compliance cost estimates: Survey non-response and temporal framing effects," arqus Discussion Papers in Quantitative Tax Research 146, arqus - Arbeitskreis Quantitative Steuerlehre.
    • Handle: RePEc:zbw:arqudp:146
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    Cited by:

    1. Sebastian Eichfelder & François Vaillancourt, 2014. "Tax Compliance Costs: A Review of Cost Burdens and Cost Structures," Hacienda Pública Española / Review of Public Economics, IEF, vol. 210(3), pages 111-148, September.
    2. Eichfelder, Sebastian & Hechtner, Frank, 2016. "Tax compliance costs: Cost burden and cost reliability," arqus Discussion Papers in Quantitative Tax Research 212, arqus - Arbeitskreis Quantitative Steuerlehre.

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    More about this item

    Keywords

    compliance cost measurement; measurement error; non-response bias; temporal framing effect;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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