Cheating, emotions, and rationality: An experiment on tax evasion

Experimental Economics

Volumn 13, Issue 2, 2010, Pages 226-247

  Coricelli, Giorgio ^a   Joffily, Mateus ^a,b   Montmarquette, Claude ^c   Villeval, Marie Claire ^d,e,f,g  

^a INSTITUT DES SCIENCES COGNITIVES   (France)

^b FEDERAL UNIVERSITY OF RIO DE JANEIRO   (Brazil)

^c UNIVERSITÉ DE MONTRÉAL   (Canada)

^d UNIVERSITÉ DE LYON   (France)

^e GATE Lyon Saint Etienne   (France)

^f IZA   (Germany)

^g CCP   (Denmark)

Author keywords

Deception; Emotions; Experiment; Physiological measures; Tax evasion

Indexed keywords

EID: 77951967270     PISSN: 13864157     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10683-010-9237-5     Document Type: Article

References (54)

1. Allingham, M., & Sandmo, A. (1972). Income tax evasion: a theoretical analysis. Journal of Public Economics, 1(3-4), 323-338.
2. Alm, J. (1991). A perspective on the experimental analysis of taxpayer reporting. The Accounting Review, 66(3), 577-593.
3. Alm, J., & McKee, M. (2004). Tax compliance as a coordination game. Journal of Economic Behavior and Organization, 54(3), 297-312.
4. Alm, J., Jackson, B., & McKee, M. (1992b). Institutional uncertainty and taxpayer compliance. American Economic Review, 82(4), 1018-1026.
5. Alm, J., McClelland, G. H., & Schulze, W. D. (1992a). Why do people pay taxes? Journal of Public Economics, 48, 21-48.
6. Alm, J., Cronshaw, M. B., & McKee, M. (1993). Tax compliance with endogenous audit selection rules. Kyklos, 1, 27-45.
7. Anders, S., Lotze, M., & Erb, M. (2004). Brain activity underlying emotional valence and arousal: a response-related fMRI study. Human Brain Mapping, 23, 200-209.
8. Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36, 818-860.
9. Baldry, J. C. (1986). Tax evasion is not a gamble. Economics Letters, 22, 333-335.
10. Ben-Shakar, G., Bornstein, G., Hopfensitz, A., & van Winden, F. (2007). Reciprocity and emotions in bargaining: using physiological and self-report measures. Journal of Economic Psychology, 28, 314-323.
11. Bernasconi, M., & Zanardi, A. (2004). Tax evasion, tax rates, and reference dependence. FinanzArchiv: Public Finance Analysis, 60(3), 422-445.
12. Blumenthal, M., Christian, C., & Slemrod, J. (2001). Do normative appeals affect tax compliance? Evidence from a controlled experiment in Minnesota. National Tax Journal, 54(1), 125-138.
13. Boucsein, W. (1992). Plenum series in behavioral psychology and medicine. Electrodermal activity. New York: Plenum.
14. Bradley, M. M. (2000). Emotion and motivation. In J. T. Cacioppo, L. G. Tassinary, & G. G. Berntson (Eds.), Handbook of psychophysiology. Cambridge: Cambridge University Press.
15. Bradley, M. M., & Lang, P. J. (2001). Measuring emotion: behavior, feeling and physiology. In R. Lane & L. Nadel (Eds.), Cognitive neuroscience of emotion. Oxford: Oxford University Press.
16. Bradley, M. M., Codispoti, M., Cuthbert, B. N., & Lang, P. J. (2001). Emotion and motivation I: defensive and appetitive reactions in picture processing. Emotion, 1, 276-298.
17. Cason, T. N., & Gangadharan, L. (2006). An experimental study of compliance and leverage in auditing and regulatory enforcement. Economic Inquiry, 44(2), 352-366.
18. Charness, G., & Dufwenberg, M. (2006). Promises and partnership. Econometrica, 74(6), 1579-1601.
19. Charness, G., & Gneezy, U. (2003). Portfolio choice and risk attitudes: an experiment. Mimeo.
20. Collins, J. H., & Plumlee, R. D. (1991). The taxpayer's labor and reporting decision: the effect of audit schemes. The Accounting Review, 66, 559-576.
21. Cowell, F. (1990). Cheating the government: the economics of evasion. Cambridge: MIT Press.
22. Cummings, R. G., Martinez-Vazquez, J., McKee, M., & Torgler, B. (2009). Tax morale affects tax compliance: evidence from surveys and artefactual field experiments. Journal of Economic Behavior and Organization, 70(3), 447-457.
23. Damasio, A. R. (1994). Descartes' error. New York: Avon.
24. Dawson, M. E., Schell, A. M., & Filion, D. L. (2000). The electrodermal system. In J. T. Cacioppo, L. G. Tassinary, & G. G. Berntson (Eds.), Handbook of psychophysiology (2nd ed.). Cambridge: Cambridge University Press.
25. de Quervain, D. J. F., Fischbacher, U., Treyer, V., Schellhammer, M., Schnyder, U., Buck, A., & Fehr, E. (2004). The neural basis of altruistic punishment. Science, 305, 1254-1258.
26. Dhami, S., & Al-Nowaihi, A. (2007). Why do people pay taxes? Prospect theory versus expected utility theory. Journal of Economic Behavior and Organization, 64(1), 171-192.
27. Edelberg, R. (1967). Electrical properties of the skin. In C. C. Brown (Ed.), Methods in psychophysiology. Baltimore: Williams & Wilkins.
28. Elster, J. (1996). Rationality and the emotions. The Economic Journal, 106(438), 1386-1397.
29. Fortin, B., Lacroix, G., & Villeval, M. C. (2007). Tax evasion and social interactions. Journal of Public Economics, 91(11-12), 2089-2112.
30. Gerschlager, C. (Ed.) (2005). Deception in markets: an economic analysis. Basingstoke: Palgrave Macmillan.
31. Gneezy, U. (2005). Deception: the role of consequences. American Economic Review, 95(1), 384-394.
32. Greiner, B. (2004). An online recruitment system for economic experiments. In K. Kremer & V. Macho (Eds.), GWDG Bericht: Vol. 63. Forschung und wissenschaftliches Rechnen 2003 (pp. 79-93). Göttingen: Ges. für Wiss. Datenverarbeitung.
33. Halla, M., & Schneider, F. G. (2009). Taxes and benefits: two distinct options to cheat on the state? Research paper, IZA.
34. Harbaugh, W. T., Mayr, U., & Burghart, D. R. (2007). Neural responses to taxation and voluntary giving reveal motives for charitable donations. Science, 316, 1622-1625.
35. Kahneman, D., & Miller, D. (1986). Norm theory: comparing reality to its alternatives. Psychological Review, 93, 136-153.
36. Kirchler, E. (2007). The economic psychology of tax behaviour. Cambridge: Cambridge University Press.
37. Lang, P. J., Bradley, M. M., & Cuthbert, B. N. (1992). A motivational analysis of emotion: reflex-cortex connections. Psychological Science, 3, 44-49.
38. Loewenstein, G. (2000). Emotions in economic theory and economic behavior. American Economic Review, 90(2), 426-432.
39. Loewenstein, G. F., Hsee, C. K., Weber, E. U., & Welch, N. (2001). Risk as feelings. Psychological Bulletin, 127, 267-286.
40. Mehrabian, A., & Russell, J. A. (1974). Approach to environmental psychology. Cambridge: MIT Press.
41. Miller, J. O., & Low, K. (2001). Motor processes in simple, go/no-go, and choice reaction time tasks: a psychophysiological analysis. Journal of Experimental Psychology, 27(2), 266-289.
42. Myles, G. D., & Naylor, R. A. (1996). A model of tax evasion with group conformity and social customs. European Journal of Political Economy, 12(1), 49-66.
43. Rubinstein, A. (2007). Instinctive and cognitive reasoning: a study of response times. Economic Journal, 117(523), 1243-1259.
44. Sanchez-Pages, S., & Vorsatz, M. (2007). An experimental study of truth-telling in sender-receiver game. Games and Economic Behavior, 61(1), 86-112.
45. Seiter, J. S., & Bruschke, J. (2007). Deception and emotion: the effects of motivation, relationship type, and sex on expected feelings of guilt and shame following acts of deception in United States and Chinese samples. Communication Studies, 58(1), 1-16.
46. Slemrod, J. (1998). On voluntary compliance, voluntary taxes, and social capital. National Tax Journal, LI, 485-492.
47. Slemrod, J. (2007). Cheating ourselves: the economics of tax evasion. Journal of Economic Perspectives, 21(1), 25-48.
48. Spicer, M. W., & Thomas, J. E. (1982). Audit probabilities and the tax evasion decision: an experimental approach. Journal of Economic Psychology, 2, 241-245.
49. Torgler, B. (2007). Tax compliance and tax morale. A theoretical and empirical analysis. Cheltenham: Edward Elgar.
50. van Winden, F., Krawczyk, M., & Hopfensitz, A. (2008). Investment, resolution of risk, and the role of affect. Amsterdam, CREED Working Paper.
51. Wild, B. (2003). Are emotions contagious? Evoked emotions while viewing emotionally expressive faces: quality, quantity, time course and gender differences. Psychiatry Research, 102(2), 109-124.
52. Yitzhaki, S. (1974). A note on 'income tax evasion: a theoretical analysis'. Journal of Public Economics, 3(2), 201-202.
53. Zajonc, R. B. (1984). The primacy of affect. American Psychologist, 39(2), 117-123.
54. Zeiliger, R. (2000). A presentation of regate. Internet-based software for experimental economics. http://www. gate. cnrs. fr/~zeiliger/regate/RegateIntro. ppt. Lyon: GATE.