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Complex Tax Incentives

delete2015-08-01
delete80
PRE
AI
J
Johannes Abeler *
S
Simon Jäger
DOI:10.1257/pol.20130137delete
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摘要

摘要

En 中文
How does complexity affect people's reaction to tax changes? To answer this question, we conduct an experiment in which subjects work for a piece rate and face taxes. One treatment features a simple tax system, the other a complex one. Subjects' economic incentives are identical across treatments. We introduce the same sequence of additional taxes in both treatments. Subjects in the complex treatment underreact to new taxes; some ignore new taxes entirely. The underreaction is stronger for subjects with lower cognitive ability. Contrary to predictions from models of rational inattention, subjects are equally likely to ignore large or small incentive changes.
Keyword:
INFORMATION SUPPRESSION
SHROUDED ATTRIBUTES
FISCAL ILLUSION
LOTTERY CHOICE
SALIENCE
ELASTICITY
AVERSION
AVERAGE
PRICE
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期刊

A
American Economic Journal-Macroeconomics
IF:
5.7
论文数:
1.4K
被引数:
4.4K

机构

I
IZA Institute Labor Economics
学者数:
497
论文数: 489
被引数: 1
U
university of oxford
学者数:
9.8W
论文数: 8.6W
被引数: 137
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