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IAREP Early Career Researcher Workshop
Organised by Michal Krol, UiA
Presentations:
11.00-11.40: Diana Jaworska: The role of fear of missing out in the consumer decision-making strategies
11.40-12.20: Laura Krumm: The relationship between pro-environmental behavior, subjective well-being and environmental impact: a meta-analysis
12.20-13.00: Aja Ropret Homar: Combatting climate change through message framing? A revealed preference experiment on voluntary carbon offsets
13.00-13.40 Lunch break
13.40-14.20: Kristjan Pulk: The Effect of Choice Architecture on the Decision to take Early Retirement
14.20-15.00: Lilith Burgstaller: You Don't Need an Invoice, Do You? An Online Experiment on Collaborative Tax Evasion
15.00-15.40: Marcel Seifert: Promoting sustainable investments with self-efficacy: Evidence from experienced investors and laypeople in an incentivized experiment
Discussants will be: Michal Krol, Leonhard Lades, Gerrit Antonides, Matthias Kasper, Eva Hofmann, and Thomas Post
All interested conference participants are warmly invited to join!
Kristiansand municipality cordially invites us to a reception in the City Hall in the center of Kristiansand. This is conveniently close to all hotels.
You may register for the conference and enjoy a drink and some food.
Welcome speeches will be given by:
- Deputy Mayor Erik Rostoft
- Vice Rector for external relations and innovation at UiA, Gøril Hannås
- IAREP president Gerrit Antonides
- Conference organiser Ellen K Nyhus
Abstract: Command, control and punishment are the traditional pillars of tax compliance enforcement. Classical economic theory of tax behavior provides a clear but limited arsenal of means to ensure compliance with the law. The interest of behavioral-economics and economic-psychology in identifying motives and understanding drivers of taxpayer behavior, has stimulated much research that reveals a complex pattern of determinants of citizens’ willingness to cooperate with the authorities. Despite recommendations to integrate behavioral insights in strategies to ensure compliance and to establish co-operative relationships between tax authorities and taxpayers, the mindset of tax authorities and auditors is still shaped by the conviction that audits and fines are the necessary and sufficient tools for enforcing compliance.
Empirical evidence shows that audits and fines are necessary, but when used indiscriminately, they can backfire. Audits and fines are an expression of authorities’ coercive power. However, power is Janus-faced: if legitimate and based on trustworthiness, it is likely to produce the intended effects; when trust in authorities is low, taxpayers are likely to react with anger and fear to deterrence and to develop strategies to evade enforcement. In order to ensure compliance with the law, it is therefore necessary to build and strengthen trust. Especially in times of crisis, trust must be strengthened by ensuring that taxpayers understand the tax law and perceive it as fair. The need for measures to safeguard the economy must be communicated clearly and measures must be justified in a transparent manner. Bureaucracy must be kept simple and supportive services need to be provided. It is essential to guarantee distributional and procedural justice, and to ensure that cooperation and solidarity is the binding social norm in society.