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Worker or Shirker – Who Evades More Taxes? A Real Effort Experiment

Author

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  • Christoph Bühren

    (University of Kassel)

  • Thorben C. Kundt

    (University of the Federal Armed Forces)

Abstract

With the help of a real effort experiment, we analyze if tax evasion depends on the amount of effort invested to generate income. In three treatments, subjects were either endowed with income or had to work moderately or hard to earn it. In line with prospect theory, subjects evaded more taxes when they worked hard for their income. We find little evidence for the prediction that tax evasion in the endowed treatment is higher than in the moderate work treatment.

Suggested Citation

  • Christoph Bühren & Thorben C. Kundt, 2013. "Worker or Shirker – Who Evades More Taxes? A Real Effort Experiment," MAGKS Papers on Economics 201326, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201326
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    1. Taxes, norms & belief equilibria
      by chris dillow in Stumbling and Mumbling on 2013-05-29 18:07:10

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    2. Nicolas Jacquemet & Stephane Luchini & Antoine Malézieux & Jason Shogren, 2016. "Is tax evasion a personality trait ? An empirical evaluation of psychological determinants of "tax morale" [L'évasion fiscale est-elle un trait de personnalité ? Une évaluation empirique ," Post-Print halshs-01476519, HAL.
    3. James Alm & William D. Schulze & Carrie von Bose & Jubo Yan, 2019. "Appeals to Social Norms and Taxpayer Compliance," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 638-666, October.
    4. Christoph Bühren & Thorben C. Kundt, 2013. "Imagine Being a Nice Guy: A Note on Hypothetical vs. Incentivized Social Preferences," MAGKS Papers on Economics 201349, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Mawani, Amin & Trivedi, Viswanath Umashanker, 2021. "Collusive vs. coercively corrupt tax auditors and their impact on tax compliance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).

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