The Behavioralist As Tax Collector: Using Natural Field Experiments to Enhance Tax Compliance
Tax collection problems date back to the earliest recorded history of mankind. This paper begins with a simple theoretical construct of paying (rather than declaring) taxes, which we argue has been an overlooked aspect of tax compliance. This construct is then tested in two large natural field experiments. Using administrative data from more than 200,000 individuals in the UK, we show that including social norms and public goods messages in standard tax payment reminder letters considerably enhances tax compliance. The field experiments increased taxes collected by the Government in the sample period and were cost-free to implement, demonstrating the potential importance of such interventions in increasing tax compliance.
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Copy CitationMichael Hallsworth, John List, Robert Metcalfe, and Ivo Vlaev, "The Behavioralist As Tax Collector: Using Natural Field Experiments to Enhance Tax Compliance," NBER Working Paper 20007 (2014), https://doi.org/10.3386/w20007.Download Citation
Non-Technical Summaries
- Both norm-based and public-good messages increased the likelihood of individuals paying their taxes due... Governments lose billions...
Published Versions
Hallsworth, Michael & List, John A. & Metcalfe, Robert D. & Vlaev, Ivo, 2017. "The behavioralist as tax collector: Using natural field experiments to enhance tax compliance," Journal of Public Economics, Elsevier, vol. 148(C), pages 14-31. citation courtesy of 
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