Reciprocal Relationships in Tax Compliance Decisions

Cécile Bazart and Aurélie Bonein ()

Working Papers from LAMETA, Universtiy of Montpellier

Abstract: Reciprocity considerations are important to the tax compliance problem as they may explain the global dynamics of tax evasion, beyond individual tax evasion decisions, toward a downward or upward spiral. To provide evidence on reciprocity in tax compliance decisions, we have conducted a laboratory experiment in which we introduced two types of inequities. The first type of inequity is called vertical, because it refers to inequities introduced by the government when it sets different fiscal parameters for identical taxpayers, while the second type of inequity is called horizontal because it refers to the fact that taxpayers may differ in tax compliance decisions. In this setting, taxpayers may react to a disadvantageous or advantageous inequity through negative or positive reciprocal behaviors, respectively. Our results support the existence of negative and positive reciprocity in both vertical and horizontal cases. When both inequities come into play and may induce reciprocal behaviors in opposite directions, the horizontal always dominates the vertical.

Pages: 41 pages
Date: 2012-12, Revised 2012-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.lameta.univ-montp1.fr/Documents/DR2012-35.pdf First version, 2012 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.lameta.univ-montp1.fr:80 (No such host is known. )

Related works:
Journal Article: Reciprocal relationships in tax compliance decisions (2014)
Working Paper: Reciprocal relationships in tax compliance decisions (2014)
Working Paper: Reciprocal Relationships in Tax Compliance Decisions (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lam:wpaper:12-35

Access Statistics for this paper

More papers in Working Papers from LAMETA, Universtiy of Montpellier Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Modat ( this e-mail address is bad, please contact ).