Abstract
We study deception choices, the self-selection of capable and less capable deceivers and deception detection in a tax compliance experiment. We find large systematic differences between whether subjects are perceived as honest or as dishonest. Taxpayers are seemingly aware of these perceptions. The empirical outcomes are in line with a theory suggesting that taxpayers make their tax compliance choices on the basis of these perceptions. Taxpayers who are perceived as honest self-select since they are more likely to underreport. This selection effect is stronger if the fines for underreporting are high.
Item Type: | Journal article |
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Form of publication: | Publisher's Version |
Faculties: | Economics > Chairs > MPI for Tax Law and Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | H31, K42, C91 |
ISSN: | 0167-2681 |
Language: | English |
Item ID: | 22056 |
Date Deposited: | 08. Dec 2014, 08:26 |
Last Modified: | 04. Nov 2020, 13:02 |