Compliance and Truthfulness: Leveraging Peer Information with Competitive Audit Mechanisms

Goeschl, Timo; Oestreich, Andreas Marcel; Soldà, Alice

doi:10.2139/ssrn.3978789

Cited by 1 publication

(2 citation statements)

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“…Fišar et al (2019) test a relative rule for income‐tax enforcement with exogenous income in the laboratory. The most closely related settings are the the rank‐order tournament auditing in Cason et al (2016) and the relative rule for environmental enforcement in Goeschl et al (2021). These are to our knowledge the only other experimental papers, where both output is not exogenous and a relative rule is employed.…”

Section: Related Literaturementioning

confidence: 99%

“…Despite this theoretical neutrality prediction, lower output is observed under a relative rule. Goeschl et al (2021), where output levels impact reporting of other firms due to a nonlinear relative rule, find that a relative rule is effective in reducing harmful pollution under perfect information but not if pollution levels are private information.…”

Section: Related Literaturementioning

confidence: 99%

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The double dividend of relative auditing—Theory and experiments on corporate tax enforcement

Bayer

2022

J Public Economic Theory

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In this paper, we present and extend previous theoretical results that show that tax authorities can at the same time reduce tax evasion and boost output with clever audit behavior. We argue that randomized controlled trials or field experiments are impractical for empirical testing in this context. Instead, we turn to laboratory experiments and test if humans follow the theoretical mechanisms underlying the theory. We find that both dividends, less evasion, and higher output, materialize in the laboratory. We show in additional experiments that the behavioral mechanism generating the higher output differs from the theoretical driver.

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Section: Related Literaturementioning

confidence: 99%

Section: Related Literaturementioning

confidence: 99%