Tax Compliance: Research Methods and Decision Processes

Tomasz Zaleskiewicz & Jakub Traczyk (eds.): “Psychological Perspectives on Risk and Risk Analysis”. New York: Springer, Forthcoming

WU International Taxation Research Paper Series No. 2019 - 04

56 Pages Posted: 28 Oct 2019 Last revised: 29 Oct 2019

See all articles by Andre Hartmann

Andre Hartmann

University of Vienna - Faculty of Psychology

Martin Mueller

University of Vienna - Faculty of Psychology

Erich Kirchler

University of Vienna - Faculty of Psychology

Date Written: October 20, 2019

Abstract

Traditionally, research focuses on individual taxpayers that - when faced with a decision under uncertainty - are assumed to maximize their profits through rational decision processes. However, economic psychology and behavioral economics reveal several anomalies where the observed effects are opposite to the theoretical predictions. Moreover, psychological research provides evidence for the importance of factors such as the understanding of the tax law, attitudes towards taxes and tax morale, personal and social norms, and perception of distributive and procedural justice. In this paper, we provide a review of the research on tax compliance decisions. We address traditional approaches to study compliance decisions and anomalies as well as the psychological determinants of compliance. Since different research methods reveal different results, we describe the arsenal of research methods and their strengths and weaknesses. We pay specific attention to results from process tracing approaches in tax compliance research. We conclude with practical implications for policymakers and researchers in the field.

Keywords: tax compliance, slippery slope framework, power, trust, tax experiments, process tracing

JEL Classification: H2, H26

Suggested Citation

Hartmann, Andre and Mueller, Martin and Kirchler, Erich, Tax Compliance: Research Methods and Decision Processes (October 20, 2019). Tomasz Zaleskiewicz & Jakub Traczyk (eds.): “Psychological Perspectives on Risk and Risk Analysis”. New York: Springer, Forthcoming ; WU International Taxation Research Paper Series No. 2019 - 04 . Available at SSRN: https://ssrn.com/abstract=3472549 or http://dx.doi.org/10.2139/ssrn.3472549

Andre Hartmann

University of Vienna - Faculty of Psychology ( email )

Universitätsstraße 7
Vienna, 1010
Austria

Martin Mueller

University of Vienna - Faculty of Psychology ( email )

Universitaetsstrasse 7
1010 Vienn
Austria

Erich Kirchler (Contact Author)

University of Vienna - Faculty of Psychology ( email )

Universitaetsstrasse 7
Vienna, A-1010
Austria
+43 1 42 7747332 (Phone)
+43 1 42 7747339 (Fax)

HOME PAGE: http://homepage.univie.ac.at/erich.kirchler

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