scholarly journals Under the Radar: The Effects of Monitoring Firms on Tax Compliance

2018 ◽  
Vol 10 (1) ◽  
pp. 1-38 ◽  
Author(s):  
Miguel Almunia ◽  
David Lopez-Rodriguez
Keyword(s):  
Tax Compliance ◽  
Welfare Gains ◽  
Tax Enforcement ◽  
Size Dependent ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Monitoring Effort

This paper analyzes the effects of size-dependent tax enforcement on firms’ tax compliance. We exploit quasi-experimental variation generated by a Large Taxpayers Unit (LTU) in Spain, which monitors firms with more than €6 million in reported revenue. Firms strategically bunch below the eligibility threshold in order to avoid stricter tax enforcement. The response is stronger in sectors where transactions leave more paper trail, suggesting that monitoring effort and the traceability of information reported by firms are complements. We estimate that there would be substantial welfare gains from extending stricter tax monitoring to smaller businesses. (JEL H25, H26, H32, L25)

scholarly journals Digitalization to Improve Tax Compliance

2019 ◽  
Vol 19 (231) ◽  
Author(s):  
Matthieu Bellon ◽  
Jillie Chang ◽  
Era Dabla-Norris ◽  
Salma Khalid ◽  
Frederico Lima ◽  
...  
Keyword(s):  
Tax Compliance ◽  
Value Added ◽  
Digital Tools ◽  
First Year ◽  
Compliance Costs ◽  
Positive Effects ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
And Performance ◽  
The Impact

This paper examines the impact of e-invoicing on firm tax compliance and performance using administrative tax data and quasi-experimental variation in the rollout of VAT electronic invoicing in Peru. We find that e-invoicing increases reported firm sales, purchases and value-added by over 5 percent in the first year after adoption. The impact is concentrated among smaller firms and sectors with higher rates of non-compliance, suggesting that e-invoicing enhances compliance by lowering compliance costs and strengthening deterrence. The reform’s positive effects on tax collection are hindered by shortcomings in the VAT refund mechanism in Peru, suggesting that digital tools such as e-invoicing should be complemented by other reforms to improve revenue mobilization.

MEMIKAT HATI WAJIB PAJAK SEHINGGA MEMILIKI WILLINGNESS TO COMPLY MELALUI PENYULUHAN PAJAK BERDASARKAN FOGG BEHAVIORAL MODEL

INFO ARTHA ◽  
2017 ◽  
Vol 2 ◽  
pp. 56-79
Author(s):  
NFN Khusnaini ◽  
Agung Widi Hatmoko
Keyword(s):  
Data Analysis ◽  
Quantitative Analysis ◽  
Statistical Data ◽  
Tax Compliance ◽  
Behavioral Model ◽  
Control Group ◽  
Qualitative And Quantitative Analysis ◽  
Qualitative And Quantitative ◽  
Quasi Experimental ◽  
Experimental Process

Attitudes towards tax compliance (willingness to comply) Indonesian society is still low. Required an innovative tax dissemination to increase it. The purpose of this study was to determine whether the tax dissemination based on Fogg Behavioral Model (FBM) approach may increase wiliingness to comply. The FBM based tax dissemination asserts that for a person to perform a target behavior, which is a willingness to comply, he or she must be sufficiently motivated, have the ability to perform the behavior, and be trigerred, to perform the behavior. This research is a combination of qualitative and quantitative analysis of statistical data results of the questionnaire, interviews, and observations of the respondent and the experimental process of dissemination. The method used in this study is a quasi experimental with patterns of nonequivalent control group (pretest-post which is not equivalent). Based on the results of data analysis, interviews and observations of the respondent and the experiment, this research showed that theFBMbasedtaxdissemination hasapositiveimpactto willingnesstocomplyofthetaxpayers. 

scholarly journals Using Payroll Tax Variation to Unpack the Black Box of Firm-Level Production

2021 ◽  
Author(s):  
Youssef Benzarti ◽  
Jarkko Harju
Keyword(s):  
Black Box ◽  
Total Output ◽  
Tax Rates ◽  
Firm Level ◽  
Payroll Tax ◽  
Payroll Taxes ◽  
Input Factor ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Level Production

Abstract This paper uses quasi-experimental variation in payroll tax rates in Finland to investigate how firms use their input factors. We find that higher payroll tax rates lead to large employment responses and have no effects on employee-level earnings. As payroll taxes increase, firms substitute away from low-skilled, routine and manual workers. Higher firm-level payroll tax rates also slightly decrease the total output of firms. Our results imply that firm-level production and input factor choices are clearly affected by payroll taxes.

EXPRESS: Variety Effects in Advertising

2021 ◽  
pp. 002224372110560
Author(s):  
Omid Rafieian ◽  
Hema Yoganarasimhan
Keyword(s):  
Response Rate ◽  
Mobile Apps ◽  
Underlying Mechanism ◽  
Experimental Variation ◽  
Different Types ◽  
Unit Increase ◽  
Quasi Experimental ◽  
Managerial Implications ◽  
Click Through Rate ◽  
Empirical Framework

Users are often exposed to a sequence of short-lived marketing interventions (e.g., ads) within each usage session in mobile apps. This study examines how an increase in the variety of ads shown in a session affects a user's response to the next ad. The authors leverage the quasi-experimental variation in ad assignment in their data and propose an empirical framework that accounts for different types confounding to isolate the effects of a unit increase in variety. Across a series of models, the authors consistently show that an increase in ad variety in a session results in a higher response rate to the next ad: holding all else fixed, a unit increase in variety of the prior sequence of ads can increase the click-through rate on the next ad by approximately 13\%. The authors then explore the underlying mechanism and document empirical evidence for an attention-based account. The paper offers important managerial implications since it identifies a source of interdependence across ad exposures that is often ignored in the design of advertising auctions. Further, the attention-based mechanism suggests that platforms can incorporate real-time attention measures to help advertisers with targeting dynamics.

scholarly journals Corruption, Trade Costs, and Gains from Tariff Liberalization: Evidence from Southern Africa

2016 ◽  
Vol 106 (10) ◽  
pp. 3029-3063 ◽  
Author(s):  
Sandra Sequeira
Keyword(s):  
Southern Africa ◽  
Firm Behavior ◽  
Trade Flow ◽  
Primary Data ◽  
Public Officials ◽  
Trade Elasticities ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Tariff Liberalization ◽  
Import Behavior

This paper exploits quasi-experimental variation in tariffs in southern Africa to estimate trade elasticities. Traded quantities respond only weakly to a 30 percent reduction in the average nominal tariff rate. Trade flow data combined with primary data on firm behavior and bribe payments suggest that corruption is a potential explanation for the observed low elasticities. In contexts of pervasive corruption, even small bribes can significantly reduce tariffs, making tariff liberalization schemes less likely to affect the extensive and the intensive margins of firms' import behavior. The tariff liberalization scheme is, however, still associated with improved incentives to accurately report quantities of imported goods, and with a significant reduction in bribe transfers from importers to public officials. (JEL D22, D73, F13, H83, O17, O19, O24)

scholarly journals College on the Cheap: Consequences of Community College Tuition Reductions

2017 ◽  
Vol 9 (2) ◽  
pp. 155-188 ◽  
Author(s):  
Jeffrey T. Denning
Keyword(s):  
High School ◽  
Community College ◽  
Community Colleges ◽  
College Enrollment ◽  
First Year ◽  
College Tuition ◽  
Percentage Points ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Over Time

This paper examines the effects of community college tuition on college enrollment. I exploit quasi-experimental variation from discounts for community college tuition in Texas that were expanded over time and across geography for identification. Community college enrollment in the first year after high school increased by 5.1 percentage points for each $1,000 decrease in tuition, which implies an elasticity of —0.29. Lower tuition also increased transfer from community colleges to universities. Marginal community college enrollees induced to attend by reduced tuition have similar graduation rates as average community college enrollees. (JEL H75, I22, I23, I28)

scholarly journals Notching R&D Investment with Corporate Income Tax Cuts in China

2021 ◽  
Vol 111 (7) ◽  
pp. 2065-2100
Author(s):  
Zhao Chen ◽  
Zhikuo Liu ◽  
Juan Carlos Suárez Serrato ◽  
Daniel Yi Xu
Keyword(s):  
Tax Credits ◽  
Experimental Variation ◽  
Chinese Policy ◽  
Quasi Experimental ◽  
Policy Simulations ◽  
Increase Productivity ◽  
The Cost ◽  
Firm Selection ◽  
D Investment ◽  
Tax Cuts

We study a Chinese policy that awards substantial tax cuts to firms with R&D investment over a threshold or “notch.” Quasi-experimental variation and administrative tax data show a significant increase in reported R&D that is partly driven by firms relabeling expenses as R&D. Structural estimates show relabeling accounts for 24.2 percent of reported R&D and that doubling R&D would increase productivity by 9 percent. Policy simulations show that firm selection and relabeling determine the cost-effectiveness of stimulating R&D, that notch-based policies are more effective than tax credits when relabeling is prevalent, and that modest spillovers justify the program from a welfare perspective. (JEL D22, D24, H25, O14, O32, P31, P35)

scholarly journals Unemployment Insurance and Means-Tested Program Interactions: Evidence from Administrative Data

2020 ◽  
Vol 12 (2) ◽  
pp. 159-192
Author(s):  
Pauline Leung ◽  
Christopher O’Leary
Keyword(s):  
Unemployment Insurance ◽  
Safety Net ◽  
Social Safety Net ◽  
Welfare Participation ◽  
Quarterly Earnings ◽  
The Past ◽  
Labor Earnings ◽  
Experimental Variation ◽  
The Social ◽  
Quasi Experimental

We study the ways in which unemployment insurance (UI) benefits interact with other elements of the social safety net around job losses. We exploit a cutoff for UI eligibility, based on a workers’ highest quarterly earnings in the past year, to generate quasi-experimental variation in UI receipt. We find that UI receipt cuts welfare (TANF) receipt by half among low-earning UI applicants but has no impact on SNAP or Medicaid usage. However, because welfare participation is low in this population, overall crowdout is small. In the quarter following layoff, UI increases total income by 55 percent (including labor earnings and transfers) (JEL E24, H53, I18, I38, J64, J65).

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