Compliance Behavior in Networks: Evidence from a Field Experiment

Drago, Francesco; Mengel, Friederike; Traxler, Christian

doi:10.1257/app.20170690

Cited by 38 publications

(34 citation statements)

References 60 publications

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“…6 Further, understanding spillover effects helps in the targeting of enforcement measures. A few earlier papers have studied regional enforcement spillovers between individuals in the context of TV license fee collection (Rincke and Traxler (2011), Drago et al (2015) and income tax filing (Meiselman (2018)). Frimmel et al (2018) and Alstadsaeter et al (2019) analyze tax evasion and avoidance spillovers within the family, while these two papers do not focus on the effects of enforcement measures.…”

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confidence: 99%

Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment

et al. 2019

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We study rental income tax compliance using a large-scale randomized field experiment and register data with third-party information on the ownership of apartments. We analyze the responses of potential landlords to treatment letters notifying them of stricter tax enforcement, or providing simplifying information on filing practices for the rental income tax. We find that both types of letters caused an increase in the propensity to report rental income, with letters notifying landlords of the use of third-party information in tax enforcement having the strongest effect. Our research design also allows us to analyze different types of spillover effects in tax enforcement. We find an indication of positive reporting spillovers within the household, but do not find clear evidence of spillovers between landlords in local rental markets.

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confidence: 99%

Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment

et al. 2019

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“…Positive correlations between stock market activity and search as well as year-end spikes in information search on capital losses when the market performs poorly indicate that taxpayers seek information for tax-planning purposes. 45 Drago, Mengel, and Traxler (2015) and Rincke and Traxler (2011) showing that the communication intensity of neighbors in rural areas is strongly correlated with spatial distance, and then document that households who were not part of the experimental sample (and were therefore untreated) were more likely to switch from evasion to compliance in response to the mailings received by their neighbors in the same network. Rincke and Traxler, using snowfall as an instrument for local inspections, also find that compliance rises significantly among those who had no exposure to field inspections.…”

Section: Networkmentioning

confidence: 83%

Tax Compliance and Enforcement

Slemrod

2018

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This paper reviews recent economic research in tax compliance and enforcement. After briefly laying out the economics of tax evasion, it focuses on recent empirical contributions. It first discusses what methodologies and data have facilitated these contributions, and then presents critical summaries of what has been learned. It discusses a promising new development, the analysis of randomized controlled trials mostly delivered via letters from the tax authority, and then reviews recent research using various methods about the impact of the principal enforcement tax policy instruments: audits, information reporting, and remittance regimes. I also explore several understudied issues worthy of more research attention. The paper closes by outlining a normative framework based on the behavioral response elasticities now being credibly estimated that allows one to assess whether a given enforcement intervention is worth doing.

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“…Obviously, this is a generalisation, and many such valuable studies do exist (e.g. Drago et al, 2015;Kim et al, 2015). But the potential gains to policy-makers are so large that they justify more work.…”

Section: Social Diffusionmentioning

confidence: 94%

Behavioural science and policy: where are we now and where are we going?

Sanders

Snijders²,

Hallsworth³

2018

Behav. Public Policy

107

125

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The use of behavioural sciences in government has expanded and matured in the last decade. Since the Behavioural Insights Team (BIT) has been part of this movement, we sketch out the history of the team and the current state of behavioural public policy, recognising that other works have already told this story in detail. We then set out two clusters of issues that have emerged from our work at BIT. The first cluster concerns current challenges facing behavioural public policy: the long-term effects of interventions; repeated exposure effects; problems with proxy measures; spillovers and general equilibrium effects and unintended consequences; cultural variation; 'reverse impact'; and the replication crisis. The second cluster concerns opportunities: influencing the behaviour of government itself; scaling interventions; social diffusion; nudging organisations; and dealing with thorny problems. We conclude that the field will need to address these challenges and take these opportunities in order to realise the full potential of behavioural public policy.

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Compliance Behavior in Networks: Evidence from a Field Experiment

Cited by 38 publications

References 60 publications

Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment

Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment

Tax Compliance and Enforcement

Behavioural science and policy: where are we now and where are we going?

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