Insensitive to nudging in tax benefits? The case of Colombia

Luis Gamboa, Luis Reyes and Alejandro Montoya Castaño
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Alejandro Montoya Castaño: Pontificia Universidad Javeriana

Vniversitas Económica, 2024, vol. 24, issue 5, No 2024-08-28, 18 pages

Abstract: Tax compliance is one of the main challenges in countries such as Colombia, which is characterized by high informality levels given that tax revenue is the fuel of several dimensions of economic activity. We conducted a Randomized Control Trial (RCT) to assess how sensitive consumers are to some of the benefits (personal or social) for requesting electronic invoices in the objective to reduce the informality in economic transactions in Colombia. We sent approximately 60,000 emails to five treatment groups and a control group. The treatments focused on tax discounts, participation in fiscal lotteries and three alternative uses of public spending. Our results indicate that tax filers are highly insensitive to the existence of individual economic benefits and social allocations of public spending. We discuss potential explanations for these findings and offer policy recommendations.

Keywords: tax compliance; informality; behavioral responses (search for similar items in EconPapers)
JEL-codes: C93 H26 O17 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:col:000416:021409

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