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Tax Compliance and the Neuroeconomics of Intertemporal Substitution

22 Pages Posted: 28 Aug 2007  

Terrence R. Chorvat

George Mason University School of Law

Abstract

This article argues that the relationship between the timing of tax payments and the decision of how much tax will be paid may have a greater impact on the level of tax compliance than would be predicted under standard exponential discounting models. To the extent that taxpayers exhibit hyperbolic or quasi-hyperbolic time discounting, compliance may be improved by separating the time at which tax returns are filed from the time in which it is paid or in which previously paid tax is refunded.

Keywords: tax compliance, neuroeconomics, intertemporal substitution

JEL Classification: D87, D91, H24, H26

Suggested Citation

Chorvat, Terrence R., Tax Compliance and the Neuroeconomics of Intertemporal Substitution. National Tax Journal, Forthcoming; George Mason Law & Economics Research Paper No. 07-29. Available at SSRN: https://ssrn.com/abstract=1009308

Terrence R. Chorvat (Contact Author)

George Mason University School of Law ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States
703-993-8208 (Phone)

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