Tax Compliance and the Neuroeconomics of Intertemporal Substitution
22 Pages Posted: 28 Aug 2007
Abstract
This article argues that the relationship between the timing of tax payments and the decision of how much tax will be paid may have a greater impact on the level of tax compliance than would be predicted under standard exponential discounting models. To the extent that taxpayers exhibit hyperbolic or quasi-hyperbolic time discounting, compliance may be improved by separating the time at which tax returns are filed from the time in which it is paid or in which previously paid tax is refunded.
Keywords: tax compliance, neuroeconomics, intertemporal substitution
JEL Classification: D87, D91, H24, H26
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Motivation Crowding Theory: A Survey of Empirical Evidence
By Bruno S. Frey and Reto Jegen
-
Motivation, Knowledge Transfer, and Organizational Forms
By Margit Osterloh and Bruno S. Frey
-
Trust Breeds Trust: How Taxpayers are Treated
By Lars P. Feld and Bruno S. Frey