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Delayed feedback, regulatory fit and goal framing effects on tax compliance: An exploratory study

Author

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  • Mora-Esquivel, Ronald
  • Solís, Martín
  • Arzadun, Paula

Abstract

This research shows the main effects of three variables on tax compliance. Specifically, a) the goal framing message (positive or negative message) about tax compliance importance addressed to taxpayers, b) the prevention and promotion orientation of the taxpayers and, c) the audit delayed feedback. We combine these variables at the laboratory experiment because they have been underestimated in the research of tax compliance decisions. In addition, this research analyzes whether the effect of the message framing on tax compliance changes according to the promotion or prevention orientation of the taxpayers, and the delayed feedback. A total of 186 undergraduate students from engineering and business administration programs took part in an experiment to explore those effects. Results show: a) that the negative frame has a positive significant effect on tax compliance; b) a significant effect of the interaction between negative frame and promotion focus. When there is a low promotion focus, the best option is not to apply a negative frame; c) that, as time goes by, the effect of delayed feedback increases.

Suggested Citation

  • Mora-Esquivel, Ronald & Solís, Martín & Arzadun, Paula, 2022. "Delayed feedback, regulatory fit and goal framing effects on tax compliance: An exploratory study," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 40(2), July.
    • Handle: RePEc:rce:rvceco:42119
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    File URL: https://revistas.ucr.ac.cr/index.php/economicas/article/view/42119
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    References listed on IDEAS

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    1. Holler, Marianne & Hoelzl, Erik & Kirchler, Erich & Leder, Susanne & Mannetti, Lucia, 2008. "Framing of information on the use of public finances, regulatory fit of recipients and tax compliance," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 597-611, August.
    2. Gary Charness & Marie-Claire Villeval, 2009. "Cooperation and Competition in Intergenerational Experiments in the Field and the Laboratory," American Economic Review, American Economic Association, vol. 99(3), pages 956-978, June.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. James Alm & Kim M. Bloomquist & Michael McKee, 2015. "On The External Validity Of Laboratory Tax Compliance Experiments," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 1170-1186, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    TAXATION; EVASION; MESSAGE; PERSONALITY; IMPUESTOS; EVASIÓN; MENSAJE; PERSONALIDAD;
    All these keywords.

    JEL classification:

    • A - General Economics and Teaching

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