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An Experimental Evaluation of Notification Strategies to Increase Property Tax Compliance: Free-Riding in the City of Brotherly Love

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Listed:
  • Michael Chirico
  • Robert P. Inman
  • Charles Loeffler
  • John MacDonald
  • Holger Sieg

Abstract

This study evaluates a set of notification strategies intended to increase property tax collection. To test these strategies, we develop a field experiment in collaboration with the Philadelphia Department of Revenue. The resulting notification strategies draw on core rationales for tax compliance: deterrence, the need to finance the provision of public goods and services, as well as an appeal to civic duty. Our empirical findings provide evidence that carefully designed and targeted notification strategies can modestly improve tax compliance.

Suggested Citation

  • Michael Chirico & Robert P. Inman & Charles Loeffler & John MacDonald & Holger Sieg, 2016. "An Experimental Evaluation of Notification Strategies to Increase Property Tax Compliance: Free-Riding in the City of Brotherly Love," Tax Policy and the Economy, University of Chicago Press, vol. 30(1), pages 129-161.
    • Handle: RePEc:ucp:tpolec:doi:10.1086/685595
    DOI: 10.1086/685595
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    Cited by:

    1. Dina Pomeranz & José Vila-Belda, 2019. "Taking State-Capacity Research to the Field: Insights from Collaborations with Tax Authorities," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 755-781, August.
    2. Cinzia Castiglioni & Edoardo Lozza & Eric Dijk & Wilco W. Dijk, 2019. "Two sides of the same coin? An investigation of the effects of frames on tax compliance and charitable giving," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-10, December.
    3. Michael Chirico & Robert Inman & Charles Loeffler & John MacDonald & Holger Sieg, 2016. "Deterring Delinquency: A Field Experiment in Improving Tax Compliance Behavior," Natural Field Experiments 00543, The Field Experiments Website.
    4. Lopez-Luzuriaga, Andrea & Scartascini, Carlos, 2019. "Compliance spillovers across taxes: The role of penalties and detection," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 518-534.
    5. Iddrisu, Khadijah & Adu, Kofi Osei, 2020. "Property Tax Compliance in Twifo Hemang Lower Denkyira District in the Central Region of Ghana: Does Distance to Nearest Tax Office Matter?," MPRA Paper 121159, University Library of Munich, Germany, revised 2024.
    6. Meiselman, Ben S., 2018. "Ghostbusting in Detroit: Evidence on nonfilers from a controlled field experiment," Journal of Public Economics, Elsevier, vol. 158(C), pages 180-193.
    7. Cyan, Musharraf R. & Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2017. "The effects of mass media campaigns on individual attitudes towards tax compliance; quasi-experimental evidence from survey data in Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 10-22.
    8. Netta Barak‐Corren & Yael Kariv‐Teitelbaum, 2021. "Behavioral responsive regulation: Bringing together responsive regulation and behavioral public policy," Regulation & Governance, John Wiley & Sons, vol. 15(S1), pages 163-182, November.
    9. Schächtele, Simeon & Eguino, Huáscar & Roman, Soraya, 2022. "Improving taxpayer registration through nudging? Field experimental evidence from Brazil," World Development, Elsevier, vol. 154(C).

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