Publication details

Factors Influencing Compliance Behavior in a Tax Laboratory Experiment



Year of publication 2015
Type Article in Proceedings
Conference Proceedings of the 19th international Conference Current Trends in Public Sector Research
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords laboratory experiment; tax compliance; voluntary contribution mechanism
Description This paper presents preliminary results of a laboratory experiment series studying the topic of tax compliance with Czech subjects. The issue of tax compliance is one of the fields where laboratory results may fill the gap in where the theoretical models are not capable to fully explain the individual decision making and real data are not easy to obtain. We link our results to the western experimental evidence to date. In our research, two factors having potential influence on tax compliance are tested: probability of being caught while cheating on taxes and penalty rate implied on subject who evade. We find that overall behavior of the Czech subjects is in accordance with foreign experimental findings. Our results demonstrate stronger effect when probability of being caught increases while the effect of increasing penalty rate is quite moderate.
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