Uncertainty resolution in tax experiments: Why waiting for an audit increases compliance |
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Authors: | Stephan Muehlbacher Luigi Mittone Barbara Kastlunger Erich Kirchler |
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Affiliation: | 1. University of Vienna, Faculty of Psychology, Austria;2. University of Trento, CEEL – Computable and Experimental Economics Laboratory, Italy |
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Abstract: | Tax compliance in a between-subjects experiment was higher when the uncertainty about the occurrence of an audit was not resolved until three weeks after participants had filed their tax returns than in a control treatment with immediate uncertainty resolution. Results have important implications for experimental tax research where providing immediate feedback whether participants are audited is common practice. |
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