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Customs compliance and the power of imagination
[working paper]
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Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Abstract This paper studies the role of beliefs about own performance or appearance for compliance at the customs. In an experiment in which underreporting has a higher expected payoff than truthful reporting we find: a large share, about 15-20 percent of the subjects, is more compliant if they have reason t... view more
This paper studies the role of beliefs about own performance or appearance for compliance at the customs. In an experiment in which underreporting has a higher expected payoff than truthful reporting we find: a large share, about 15-20 percent of the subjects, is more compliant if they have reason to imagine that their performance influences their subjective audit probability. In contrast, we do not find evidence for individuals who believe that by their personal performance they can reduce the subjective probability for an audit. Our results suggest that the power of imagination, i.e. the role of second-order beliefs in the process of customs declarations is important and may potentially be used to improve customs and tax compliance. (author's abstract)... view less
Keywords
duty; tax law; probability; achievement; control
Classification
Public Finance
Document language
English
Publication Year
2011
City
Berlin
Page/Pages
29 p.
Series
Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Schwerpunkt Märkte und Politik, Forschungsprofessur und Projekt The Future of Fiscal Federalism, SP II 2011-108
Handle
https://hdl.handle.net/10419/54588
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications