Taxman's Dilemma: Coercion or Persuasion? Evidence from a Randomized Field Experiment in Ethiopia
This study is an analysis of data from a randomized controlled trial of 2 innovative anti-tax evasion schemes in Ethiopia
Abstract
皇冠体育app authors analyze data from a randomized controlled trial of two innovative anti-tax evasion schemes in Ethiopia that signal threats of audit and complimentary messages that encourage tax morale. 皇冠体育appir results indicate that the threat of audit reduces tax evasion significantly, and its effect is higher in businesses commonly suspected of high tax evasion rates. 皇冠体育appy also find that appealing to the tax morale promotes compliance but slightly less than that of audit threat. 皇冠体育appir results are robust to different estimation strategies and less sensitive to potential confounding factors.
This work is part of the 鈥楳acroeconomics in Low-income countries鈥� programme
Citation
Shimeles, Abebe, Daniel Zerfu Gurara, and Firew Woldeyes.聽2017.聽鈥漈axman鈥檚 Dilemma: Coercion or Persuasion? Evidence from a Randomized Field Experiment in Ethiopia.鈥澛燗merican Economic Review,聽107 (5): 420-24.DOI: 10.1257/aer.p20171141