The use of field experiments to increase tax compliance

Abstract

Governments have become increasingly interested in the 'explosion' of research into taxpayer behaviour. This article briefly reviews two main theories of tax compliance ('deterrence' and 'non-deterrence'), before discussing the recent rapid rise of natural field experiments (NFEs) in this area. These NFEs represent a 'win-win' for policy-makers and academics, since they can test theories while also evaluating the impact of a specific intervention in the real world. The evidence from NFEs shows that deterrence …