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Recent economic literature emphasizes the importance of moral considerations to explain compliance behavior with respect to underground activities such as tax evasion. A considerable amount of research aims to identify factors that affect the intrinsic motivation to comply. However, the causal...
Persistent link: https://www.econbiz.de/10013146174
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 …
Persistent link: https://www.econbiz.de/10013316778
in biology and the social sciences. Recent experimental evidence suggests that altruistic punishment is an important … mechanism to maintain cooperation among humans. In this paper we explore the boundary conditions for altruistic punishment to … maintain cooperation by systematically varying the cost and impact of punishment, using a subject pool which extends beyond the …
Persistent link: https://www.econbiz.de/10013318468
We study the impact of tax and minimum wage reforms on the incidence of informality. To gauge the incidence of informality, we use measures of the extent of tax evasion, the extent of minimum wage non-compliance, and the size of the informal workforce. Our approach allows us to examine (i) the...
Persistent link: https://www.econbiz.de/10013113080
We relate tax evasion behavior to a substantial literature on self and social comparison in judgements. Taxpayers engage in tax evasion as a means to boost their expected consumption relative to others in their "local" social network, and relative to past consumption. The unique Nash equilibrium...
Persistent link: https://www.econbiz.de/10012918223
In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about others' behavior. Subjects have to decide between a 'registered' income, the realization of which...
Persistent link: https://www.econbiz.de/10013127327
actions of bad actors. However, in many situations bad acts go undetected and unknown to others.We use a lab experiment to …
Persistent link: https://www.econbiz.de/10012918262
welfare is reduced is that punishment can express anger about free-riding. If this is the case, then tools that regulate … aggression. In this lab experiment, we find that adopting an objective attitude (Objective), through a form of emotion regulation …
Persistent link: https://www.econbiz.de/10012964994
punishment, so that they increase overall welfare? We report an experiment in which players can issue non-binding threats to … their actual punishment level. We find that threats increase the level of contributions significantly. Efficiency is … punishment leads to lower threats, cooperation and welfare, restoring them to levels equal to or below the levels attained in the …
Persistent link: https://www.econbiz.de/10013115640
punishment is widely agreed to be potentially useful in fostering cooperation, many recent results in psychology and economics … promoting social norms. We show here, using experiments with human subjects, that public implementation of punishment can … interests, we find that privately implemented punishment reduces cooperation relative to a baseline treatment without punishment …
Persistent link: https://www.econbiz.de/10012780905