Taxation and Nudging
Edward Elgar Publishing
Reason for embargo
This chapter examines the contributions behavioural economics in general and ‘nudging’ in particular can make to improving compliance with tax systems. Two broad approaches to promoting tax compliance are identified, one based on the assumption that taxpayers make ‘rational’ economic decisions with respect to their legal obligations and the other involving an understanding of a wider range of factors influencing taxpayers’ behaviour. It is shown that behavioural insights and ‘nudging’ have considerable potential to improve tax compliance further without some of the disadvantages that can be associated with an approach based on detection and penalties.
This is the author accepted manuscript. The final version is available from Edward Elgar via the link in this record.
In Altman, M., (Eds.) Handbook of Behavioral Economics and Smart-Decision-Making: Rational Decision-Making within the Bounds of Reason. Edward Elgar Publishing, Cheltenham and Northampton Massachusetts 01 Jun 2017, pp. 317 - 330
978 1 78254 957 4
Place of publication
Cheltenham and Northampton Massachusetts