Deception choice and self-selection – The importance of being earnest

Kai Konrad, Tim Lohse and Salmai Qari

Journal of Economic Behavior & Organization, 2014, vol. 107, issue PA, 25-39

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.

Keywords: Deception; Self-selection; Tax compliance; Lie-catching (search for similar items in EconPapers)
JEL-codes: C91 H31 K42 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:107:y:2014:i:pa:p:25-39

DOI: 10.1016/j.jebo.2014.07.012

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