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

Volumn 34, Issue , 2013, Pages 169-180

  Kogler, Christoph ^a   Batrancea, Larissa ^b   Nichita, Anca ^b   Pantya, Jozsef ^c   Belianin, Alexis ^d   Kirchler, Erich ^a  

^a UNIVERSITY OF VIENNA   (Austria)

^b BABE BOLYAI UNIVERSITY   (Romania)

^c UNIVERSITY OF DEBRECEN   (Hungary)

^d NATIONAL RESEARCH UNIVERSITY HIGHER SCHOOL OF ECONOMICS   (Russian Federation)

Author keywords

Cross cultural; Power; Slippery slope framework; Tax compliance; Trust

Indexed keywords

EID: 84873290730     PISSN: 01674870     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.joep.2012.09.010     Document Type: Article

References (60)

1. Allingham M., Sandmo A. Income tax evasion: A theoretical analysis. Journal of Public Economics 1972, 1(3-4):323-338.
2. Alm J. On the experimental analysis of taxpayer reporting. The Accounting Review 1991, 66(3):577-593.
3. Alm J., Sanchez I., de Juan A. Economic and noneconomic factors in tax compliance. Kyklos 1995, 48(1):3-18.
4. Alm J., Torgler B. Culture differences and tax morale in the United States and in Europe. Journal of Economic Psychology 2006, 27:224-246.
5. Andreoni J., Erard B., Feinstein J.S. Tax compliance. Journal of Economic Literature 1998, 36(2):818-860.
6. Baldry J.C. Income tax evasion and the tax schedule: Some experimental results. Public Finance 1987, 42(3):357-383.
7. Braithwaite V., Ahmed E. A threat to tax morale: The case of Australian higher education policy. Journal of Economic Psychology 2005, 26(4):523-540.
8. Braithwaite V. Dancing with tax authorities: Motivational postures and non-compliant actions. Taxing democracy. Understanding tax avoidance and tax evasion 2003, 15-39. Ashgate, Aldershot, UK. V. Braithwaite (Ed.).
9. Castelfranchi C., Falcone R. Trust theory. A socio-cognitive and computational model 2010, John Wiley & Sons Ltd., West Sussex.
10. Clark J., Friesen L., Muller R.A. The good, the bad, and the regulator: An experimental test of two conditional audit schemes. Economic Inquiry 2004, 42(1):69-87.
11. Coleman, S. (1996). The Minnesota income tax compliance experiment: State tax results. (working paper).
12. Cummings R.G., Martinez-Vasquez J., McKee M., Torgler B. Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment. Journal of Economic Behavior and Organization 2009, 70(3):447-457.
13. Elffers H., Weigel R.H., Hessing D.J. The consequences of different strategies for measuring tax evasion behaviour. Journal of Economic Psychology 1987, 8(3):311-337.
14. Feld L.P., Frey B.S. Trust breeds trust: How taxpayers are treated. Economics of Governance 2002, 3(2):87-99.
15. Feld L.P., Frey B.S. Tax compliance as the result of a psychological tax contract: The role of incentives and responsive regulation. Law and Policy 2007, 29:102-120.
16. Fischer, J., & Schneider, F. (2009). The puzzle of tax compliance revisited: Testing the " slippery slope" hypothesis for trust and power against field data. . http://www.sgvs.ch/congress09/upload/p_296.pdf.
17. Fischer C.M., Wartick M., Mark M.M. Detection probability and taxpayer compliance: A review of the literature. Journal of Accounting Literature 1992, 11(1):1-46.
18. Fjeldstad O.-H. What's trust got to do with it? Non-payment of service charges in local authorities in South Africa. Journal of Modern African Studies 2004, 42(4):539-562.
19. Frey B.S. Tertium datur - pricing, regulating and intrinsic motivation. Kyklos 1992, 45(2):161-184.
20. Frey B.S. Not just for the money: An economic theory of personal motivation 1997, Edward Elgar, Cheltenham.
21. Frey B.S. Deterrence and tax morale in the European Union. European Review 2003, 11(3):385-406.
22. Gambetta, D. (2000). Can we trust trust? In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 213-237). Electronic edition: Department of Sociology, University of Oxford.
23. Hammar H., Jagers S.C., Nordblom K. Perceived tax evasion and the importance of trust. Journal of Socio-Economics 2009, 38(2):238-245.
24. Hyun, J. K. (2005). Tax compliance in Korea and Japan: Why are they different? (working paper).
25. James S., Alley C. Tax compliance, self-assessment and tax administration. Journal of Finance and Management in Public Services 2002, 2(2):27-42.
26. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The worldwide governance indicators. Methodology and analytical issues. Policy Research Working Paper, 5430.
27. Kirchler E. The economic psychology of tax behaviour 2007, Cambridge University Press, Cambridge.
28. Kirchler E., Hoelzl E., Wahl I. Enforced versus voluntary tax compliance: The " slippery slope" framework. Journal of Economic Psychology 2008, 29(2):210-225.
29. Kirchler E., Muehlbacher S., Kastlunger B., Wahl I. Why pay taxes: A review on tax compliance decisions. Developing alternative frameworks for explaining tax compliance 2010, 15-32. Routledge, London, New York. J. Alm, J. Martinez-Vasquez, B. Torgler (Eds.).
30. Kirchler E., Wahl I. Tax compliance inventory TAX-I: Designing an inventory for surveys of tax compliance. Journal of Economic Psychology 2010, 31:331-346.
31. Kramer R.M. Trust and distrust in organizations: Emerging perspectives, enduring questions. Annual Review of Psychology 1999, 50(1):569-598.
32. Lago-Peñas I., Lago-Peñas S. The determinants of tax morale in comparative perspective: Evidence from European countries. European Journal of Political Economy 2010, 26:441-453.
33. Lavoie R. Flying above the law and below the radar: Instilling a taxpaying ethos in those playing by their own rules. Pace Law Review 2009, 29(4):637-687.
34. Lewis A. The psychology of taxation 1982, Martin Robertson, Oxford.
35. Lisi G. Testing the slippery slope framework. Economics Bulletin 2012, 32(2):1369-1377.
36. Muehlbacher, S., Kogler, C., & Kirchler, E. (2012). An empirical testing of the slippery slope framework: The role of trust and power in explaining tax compliance (working paper).
37. Muehlbacher S., Kirchler E., Schwarzenberger H. Voluntary versus enforced compliance: Empirical evidence for the " slippery slope" framework. European Journal of Law and Economics 2011, 32:89-97.
38. Mulder L.B., van Dijk E., De Cremer D., Wilke H.A.M. Undermining trust and cooperation: The paradox of sanctioning systems in social dilemmas. Journal of Experimental Social Psychology 2006, 42(2):147-162.
39. Orviska M., Hudson J. Tax evasion, civic duty and the law abiding citizen. European Journal of Political Economy 2002, 19(1):83-102.
40. Pommerehne, W., & Frey, B. S. (1992). The effects of tax administration on tax morale (Series II, No. 191): University of Konstanz.
41. Riahi-Belkaoiu A. Relationship between tax compliance internationally and selected determinants of tax morale. Journal of International Accounting, Auditing and Taxation 2004, 13:135-143.
42. Richardson G. Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing and Taxation 2006, 15:150-169.
43. Richardson G. The relationship between culture and tax evasion across countries: Additional evidence and extensions. Journal of International Accounting, Auditing and Taxation 2008, 17:67-78.
44. Taxpayer compliance. Vol. 1, An agenda for research 1989, University of Pennsylvania Press, Philadelphia. J. Roth, J.T. Scholz, A. Dryden-Witte (Eds.).
45. Sandmo, A. (2003). Three decades of tax evasion: A perspective on the literature. In Paper presented at the Skatteforum (The Research Forum on Taxation), Rosendal, Norway.
46. Schmoelders G. Das irrationale in der öffentlichen Finanzwirtschaft 1960, Suhrkamp, Frankfurt am Main.
47. Schneider F., Buehn A., Montenegro C.E. New estimates for the shadow economies all over the world. International Economic Journal 2010, 24(4):443-461.
48. Scholz J.T., Lubell M. Trust and taxpaying: Testing the heuristic approach to collective action. American Journal of Political Science 1998, 42(2):398-417.
49. Torgler B. Tax morale, rule-governed behaviour and trust. Constitutional Political Economy 2003, 14(2):119-140.
50. Torgler B. Tax morale and direct democracy. European Journal of Political Economy 2005, 21(2):525-531.
51. Torgler, B., & Murphy, C. (2004). Tax morale in Australia: What shapes it and has it changed over time? CREMA Working Papers Series 2004-04, Center for Research in Economics, Management and the Arts.
52. Torgler, B., & Schneider, F. (2004). Does culture influence tax morale? Evidence from different European countries. CREMA Working Paper No. 2004-17, Basel: Center for Research in Economics, Management and Arts.
53. Torgler B., Schneider F. The impact of tax morale and institutional quality on the shadow economy. Journal of Economic Psychology 2009, 30:228-245.
54. Transparency International Corruption Perceptions Index (2011). Retrieved 21.02.12. http://cpi.transparency.org/cpi2011/.
55. Turner J.C. Explaining the nature of power: A three-process theory. European Journal of Social Psychology 2005, 35(1):1-22.
56. van Dijke M., Verboon P. Trust in authorities as a boundary condition to procedural fairness effects on tax compliance. Journal of Economic Psychology 2010, 31:80-91.
57. Wahl I., Kastlunger B., Kirchler E. Trust in authorities and power to enforce tax compliance: An empirical analysis of the " slippery slope framework" Law and Policy 2010, 32(4):383-406.
58. Webley P., Robben H.S.J., Elffers H., Hessing D.J. Tax evasion: An experimental approach 1991, Cambridge University Press, Cambridge.
59. Webley P. Tax compliance by businesses. New perspectives on economic crime 2004, 95-126. Edward Elgar, Cheltenham. H. Sjögren, G. Skogh (Eds.).
60. The World Bank Group and PricewaterhouseCoopers International Limited. (2010). Paying taxes 2011: The global picture.