Tax Evasion: Cheating Rationally or Deciding Emotionally?
Author(s) / Creator(s)
Coricelli, Giorgio
Joffily, Mateus
Montmarquette, Claude
Villeval, Marie-Claire
Abstract / Description
The economic models of tax compliance predict that individuals should evade taxes when the expected benefit of cheating is greater than its expected cost. When this condition is fulfilled, the high compliance however observed remains a puzzle. In this paper, we investigate the role of emotions as a possible explanation of tax compliance. Our laboratory experiment shows that emotional arousal, measured by Skin Conductance Responses, increases in the proportion of evaded taxes. The perspective of punishment after an audit, especially when the pictures of the evaders are publicly displayed, also raises emotions. We show that an audit policy that induces shame on the evaders favors compliance.
Keyword(s)
Vermeidung Abgabe Gefühl Scham Experiment Vermeidung Abgabe Gefühl Scham Experiment tax evasion emotions neuro-economics physiological measures shame experimentsPersistent Identifier
Date of first publication
2007
Is part of series
Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3103
Citation
-
dp3103.pdfAdobe PDF - 394.57KBMD5: 604e7c687e9f5e6f4a47633e0cf7d88e
-
There are no other versions of this object.
-
Author(s) / Creator(s)Coricelli, Giorgio
-
Author(s) / Creator(s)Joffily, Mateus
-
Author(s) / Creator(s)Montmarquette, Claude
-
Author(s) / Creator(s)Villeval, Marie-Claire
-
PsychArchives acquisition timestamp2022-11-17T11:08:42Z
-
Made available on2008-06-02
-
Made available on2015-12-01T10:32:08Z
-
Made available on2022-11-17T11:08:42Z
-
Date of first publication2007
-
Abstract / DescriptionThe economic models of tax compliance predict that individuals should evade taxes when the expected benefit of cheating is greater than its expected cost. When this condition is fulfilled, the high compliance however observed remains a puzzle. In this paper, we investigate the role of emotions as a possible explanation of tax compliance. Our laboratory experiment shows that emotional arousal, measured by Skin Conductance Responses, increases in the proportion of evaded taxes. The perspective of punishment after an audit, especially when the pictures of the evaders are publicly displayed, also raises emotions. We show that an audit policy that induces shame on the evaders favors compliance.en
-
Persistent Identifierhttps://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bsz:291-psydok-16197
-
Persistent Identifierhttps://hdl.handle.net/20.500.11780/1077
-
Persistent Identifierhttps://doi.org/10.23668/psycharchives.9181
-
Language of contenteng
-
Is part ofIZA Discussion Paper Series No. 3103
-
Is part of seriesForschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3103
-
Keyword(s)Vermeidungde
-
Keyword(s)Abgabede
-
Keyword(s)Gefühlde
-
Keyword(s)Schamde
-
Keyword(s)Experimentde
-
Keyword(s)Vermeidungde
-
Keyword(s)Abgabede
-
Keyword(s)Gefühlde
-
Keyword(s)Schamde
-
Keyword(s)Experimentde
-
Keyword(s)tax evasionen
-
Keyword(s)emotionsen
-
Keyword(s)neuro-economicsen
-
Keyword(s)physiological measuresen
-
Keyword(s)shameen
-
Keyword(s)experimentsen
-
Dewey Decimal Classification number(s)150
-
TitleTax Evasion: Cheating Rationally or Deciding Emotionally?en
-
DRO typereport
-
Visible tag(s)PsyDok