The Economic Psychology of Tax Behaviour

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Cambridge University Press, Jun 21, 2007 - Psychology
Tax evasion is a complex phenomenon which is influenced not just by economic motives but by psychological factors as well. Economic-psychological research focuses on individual and social representations of taxation as well as decision-making. In this 2007 book, Erich Kirchler assembles research on tax compliance, with a focus on tax evasion, and integrates the findings into a model based on the interaction climate between tax authorities and taxpayers. The interaction climate is defined by citizens' trust in authorities and the power of authorities to control taxpayers effectively; depending on trust and power, either voluntary compliance, enforced compliance or no compliance are likely outcomes. Featuring chapters on the social representations of taxation, decision-making and self-employed income tax behaviour, this book will appeal to researchers in economic psychology, behavioural economics and public administration.
 

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Contents

Introduction
xv
Tax law the shadow economy and tax noncompliance
1
22 Shadow economy
9
23 Tax compliance versus noncompliance
17
232 Diffusion of income tax evasion
19
Social representations of taxes
24
31 Subjective knowledge and mental concepts
27
312 Subjective concepts of taxation
35
Tax compliance decisions
99
41 Audit probabilities fines tax rate and income effects
103
411 Audit rates
104
412 Fines
107
413 Marginal tax rate
110
414 Income
111
415 Reasons for weak effects of audits and fines
112
42 Repeated audits
114

32 Attitudes
45
33 Norms
54
331 Personal norms
55
332 Social norms
60
333 Societal norms
66
perceived opportunities of noncompliance
68
35 Fairness
69
351 Distributive justice
74
352 Procedural justice
80
353 Retributive justice
83
354 Individual and situational differences in justice concerns
86
355 Justice and social identification
89
36 Motivation to comply
92
362 Tax morale
95
43 Heuristics biases and framing effects
125
Selfemployment and taxpaying
148
Interaction between tax authorities and taxpayers
163
Cautious conclusions
178
72 Summary of research findings
183
721 Interaction between tax authorities and taxpayers
185
722 Social representations of taxes
187
723 Deciding to pay taxes
193
724 Selfemployment and paying taxes out of pocket
196
trust in authorities and voluntary compliance versus power of authorities and enforced compliance
198
References
203
Index
229
Copyright

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Page 212 - Friedland, N. (1982), A Note on Tax Evasion as a Function of the Quality of Information about the Magnitude and Credibility of Threatened Fines: Some Preliminary Research, Journal of Applied Social Psychology 12: 54-59.
Page xi - Trust is an important lubricant of a social system. It is extremely efficient; it saves a lot of trouble to have a fair degree of reliance on other people's word.

About the author (2007)

Erich Kirchler is a Professor in the Faculty of Psychology at the University of Vienna. His research interests include economic psychology, household financial decision-making and tax behaviour, and he has written several books in these areas.

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