Misperception of chance and loss repair: On the dynamics of tax compliance

Journal of Economic Psychology

Volumn 28, Issue 6, 2007, Pages 678-691

  Maciejovsky, Boris ^a   Kirchler, Erich ^b   Schwarzenberger, Herbert ^b  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^b UNIVERSITY OF VIENNA   (Austria)

Author keywords

Audits; Loss repair; Misconception of chance; Sanctions; Tax evasion

Indexed keywords

EID: 36448944663     PISSN: 01674870     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.joep.2007.02.002     Document Type: Article

References (42)

1. Abbink K., and Henning-Schmidt H. Neutral versus loaded instructions in a bribery experiment. Experimental Economics 9 (2006) 103-121
2. Allingham M.G., and Sandmo A. Income tax evasion: A theoretical analysis. Journal of Public Economics 1 (1972) 323-338
3. Alm J. Tax compliance and administration. In: Hildreth W.B., and Richardson J.A. (Eds). Handbook on taxation (1999), Marcel Dekker, New York 741-768
4. Alm J., Jackson B., and McKee M. Deterrence and beyond: Toward a kinder gentler IRS. In: Slemrod J. (Ed). Why people pay taxes (1992), The University of Michigan Press, Ann Arbor 311-329
5. Alm J., McClelland G.H., and Schulze W.D. Why do people pay taxes?. Journal of Public Economics 48 (1992) 21-38
6. Alm J., McClelland G.H., and Schulze W.D. Changing the social norm of tax compliance by voting. Kyklos 52 (1999) 141-171
7. Alm J., Sanchez I., and Juan A.D. Economic and noneconomic factors in tax compliance. Kyklos 48 (1995) 3-18
8. Andreoni J., Erard B., and Feinstein J.S. Tax compliance. Journal of Economic Literature 36 (1998) 818-860
9. Antonides G., and Robben H.S.J. True positives and false alarms in the detection of tax evasion. Journal of Economic Psychology 16 (1995) 617-640
10. Baldry J.C. Income tax evasion and the tax schedule: Some experimental results. Public Finance 42 (1987) 357-383
11. Bayer R.-C. A contest with the taxman: The impact of tax rates on tax evasion and wastefully invested resources. European Economic Review 50 (2006) 1071-1104
12. Beck P.J., Davis J.S., and Jung W.-O. Experimental evidence on taxpayer reporting under uncertainty. Accounting Review 66 (1991) 535-558
13. Cowell F.A. Tax-evasion experiments: An economist's view. In: Webley P., Robben H., Elffers H., and Hessing D. (Eds). Tax evasion: An experimental approach (1991), Cambridge University Press, Cambridge 123-127
14. Davis D.D., and Holt C.A. Experimental economics (1993), Cambridge University Press, Cambridge
15. Fehr E., and Gächter S. Cooperation and punishment in public goods experiments. American Economic Review 90 (2000) 980-994
16. Fischbacher, U. (in press). Ztree: Zurich toolbox for readymade economic experiments: Experimenter's manual, Experimental Economics.
17. Fischer C.M., Wartick M., and Mark M.M. Detection probability and taxpayer compliance: A review of the literature. Journal of Accounting Literature 11 (1992) 1-46
18. Friedland N., Maital S., and Rutenberg A. A simulation study of income tax evasion. Journal of Public Economics 10 (1978) 107-116
19. Guala F., and Mittone L. Experiments in economics: External validity and the robustness of phenomena. Journal of Economic Methodology 12 (2005) 495-515
20. Hasseldine J.D., and Hite P.A. Framing, gender and tax compliance. Journal of Economic Psychology 24 (2003) 517-533
21. Hastie R., and Dawes R.M. Rational choice in an uncertain world: The psychology of judgment and decision making (2001), Sage, Thousand Oaks
22. Hessing D.J., Elffers H., Robben H.S.J., and Webley P. Does deterrence deter? Measuring the effect of deterrence on tax compliance in field studies and experimental studies. In: Slemrod J. (Ed). Why people pay taxes: Tax compliance and enforcement (1992), The University of Michigan Press, Ann Arbor 291-305
23. Kahneman D., and Tversky A. Prospect theory: An analysis of decision under risk. Econometrica 47 (1979) 263-291
24. Kirchler E. The economic psychology of tax compliance (2007), Cambridge University Press, Cambridge
25. Kirchler E., and Maciejovsky B. Tax compliance within the context of gain and loss situations, expected and current asset position, and profession. Journal of Economic Psychology 22 (2001) 173-194
26. Kirchler E., and Maciejovsky B. Simultaneous over- and underconfidence: Evidence from experimental asset markets. Journal of Risk and Uncertainty 25 (2002) 65-85
27. Mason R., and Calvin L. A study of admitted income tax evasion. Law and Society Review 13 (1978) 73-89
28. Mittone L. Dynamic behaviour in tax evasion: An experimental approach. Journal of Socio-Economics 35 (2006) 813-835
29. Murphy K. The role of trust in nurturing compliance: A study of accused tax avoiders. Law and Human Behavior 28 (2004) 187-209
30. Schepanski A., and Shearer T. A prospect theory account of the income tax withholding phenomenon. Organizational Behavior and Human Decision Processes 63 (1995) 174-186
31. Spicer M.W., and Hero R.E. Tax evasion and heuristics: A research note. Journal of Public Economics 26 (1985) 263-267
32. Spicer M.W., and Lundstedt S.B. Understanding tax evasion. Public Finance 31 (1976) 295-305
33. Spicer M.W., and Thomas J.E. Audit probabilities and the tax evasion decision: An experimental approach. Journal of Economic Psychology 2 (1982) 241-245
34. Srinivasan T.N. Tax evasion: A model. Journal of Public Economics 2 (1973) 339-346
35. Taylor N. Understanding taxpayer attitudes through understanding taxpayer identities. In: Braithwaite V. (Ed). Taxing democracy: Understanding tax avoidance and evasion (2003), Hants, Ashgate 71-92
36. Torgler B. Speaking to theorists and searching for facts: Tax morale and tax compliance in experiments. Journal of Economic Surveys 16 (2002) 657-684
37. Tversky A., and Kahneman D. Judgement under uncertainty: Heuristics and biases. Science 185 (1974) 1124-1131
38. Van Baal P. Computer simulations of criminal deterrence: From public policy to local interaction to individual behavior (2004), Den Haag, Boom Juridische Uitgevers
39. Webley P. Audit probabilities and tax evasion in a business simulation. Economics Letters 25 (1987) 267-270
40. Webley P., Robben H.S.J., Elffers H., and Hessing D.J. Tax evasion: An experimental approach (1991), Cambridge University Press, Cambridge
41. Wenzel M. Tax compliance and the psychology of justice: Mapping the field. In: Braithwaite V. (Ed). Taxing democracy: Understanding tax avoidance and evasion (2003), Hants, Ashgate 41-69
42. Wenzel M. Motivation or rationalization? Causal relations between ethics, norms and tax compliance. Journal of Economic Psychology 26 (2005) 491-508