Response Times and Tax Compliance
Inspired by the work of Rubinstein, this study revisits data from a previous lab experiment to explore the relation between response times and tax compliance and understand the potential non-linearity between them by classifying decisions and individuals into compliance types. We find that individua...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2019-11-01
|
| Series: | Games |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-4336/10/4/45 |
| _version_ | 1811200216346394624 |
|---|---|
| author | Ho Fai Chan Uwe Dulleck Benno Torgler |
| author_facet | Ho Fai Chan Uwe Dulleck Benno Torgler |
| author_sort | Ho Fai Chan |
| collection | DOAJ |
| description | Inspired by the work of Rubinstein, this study revisits data from a previous lab experiment to explore the relation between response times and tax compliance and understand the potential non-linearity between them by classifying decisions and individuals into compliance types. We find that individuals’ decision response time is related to their compliance decisions. Full-non compliant individuals (those who did not declare any earned income) have shorter response times than those who fully or partially complied. Full-compliant individuals also tend to declare income faster than partially compliant subjects. Such results are robust throughout time and when controlling for contextual characteristics of experimental design. We find non-linearity via an inverted <i>U</i>-shape function that reaches its maximum declaration time around a compliance rate of 60%, even after controlling for contextual experimental design factors. In addition, we observe a non-linear relation between cognitive skills, response time, and tax compliance. Participants with relatively high cognitive skills and very low or very high tax compliance level have low response times, while subjects with relatively lower cognitive skills tend to report higher decision times for higher compliance levels. |
| first_indexed | 2024-04-12T02:00:58Z |
| format | Article |
| id | doaj.art-0aff178274744232bee554d377b403b2 |
| institution | Directory Open Access Journal |
| issn | 2073-4336 |
| language | English |
| last_indexed | 2024-04-12T02:00:58Z |
| publishDate | 2019-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Games |
| spelling | doaj.art-0aff178274744232bee554d377b403b22022-12-22T03:52:40ZengMDPI AGGames2073-43362019-11-011044510.3390/g10040045g10040045Response Times and Tax ComplianceHo Fai Chan0Uwe Dulleck1Benno Torgler2School of Economics and Finance, Queensland University of Technology, Brisbane, QLD 4000, AustraliaSchool of Economics and Finance, Queensland University of Technology, Brisbane, QLD 4000, AustraliaSchool of Economics and Finance, Queensland University of Technology, Brisbane, QLD 4000, AustraliaInspired by the work of Rubinstein, this study revisits data from a previous lab experiment to explore the relation between response times and tax compliance and understand the potential non-linearity between them by classifying decisions and individuals into compliance types. We find that individuals’ decision response time is related to their compliance decisions. Full-non compliant individuals (those who did not declare any earned income) have shorter response times than those who fully or partially complied. Full-compliant individuals also tend to declare income faster than partially compliant subjects. Such results are robust throughout time and when controlling for contextual characteristics of experimental design. We find non-linearity via an inverted <i>U</i>-shape function that reaches its maximum declaration time around a compliance rate of 60%, even after controlling for contextual experimental design factors. In addition, we observe a non-linear relation between cognitive skills, response time, and tax compliance. Participants with relatively high cognitive skills and very low or very high tax compliance level have low response times, while subjects with relatively lower cognitive skills tend to report higher decision times for higher compliance levels.https://www.mdpi.com/2073-4336/10/4/45response timetax compliancecognitive skillincome declarationtax experiment |
| spellingShingle | Ho Fai Chan Uwe Dulleck Benno Torgler Response Times and Tax Compliance Games response time tax compliance cognitive skill income declaration tax experiment |
| title | Response Times and Tax Compliance |
| title_full | Response Times and Tax Compliance |
| title_fullStr | Response Times and Tax Compliance |
| title_full_unstemmed | Response Times and Tax Compliance |
| title_short | Response Times and Tax Compliance |
| title_sort | response times and tax compliance |
| topic | response time tax compliance cognitive skill income declaration tax experiment |
| url | https://www.mdpi.com/2073-4336/10/4/45 |
| work_keys_str_mv | AT hofaichan responsetimesandtaxcompliance AT uwedulleck responsetimesandtaxcompliance AT bennotorgler responsetimesandtaxcompliance |