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Response Times and Tax Compliance

by 1,2, 1,2,3 and 1,2,4,*
School of Economics and Finance, Queensland University of Technology, Brisbane, QLD 4000, Australia
Centre for Behavioural Economics, Society and Technology, Brisbane, QLD 4000, Australia
Crawford School of Public Policy, Australian National University, Canberra, ACT 4000, Australia
Center for Research in Economics, Management and the Arts, CH-8008 Zürich, Switzerland
Author to whom correspondence should be addressed.
Games 2019, 10(4), 45;
Received: 29 September 2019 / Revised: 18 October 2019 / Accepted: 21 October 2019 / Published: 4 November 2019
(This article belongs to the Special Issue Empirical Tax Research and Application)
Inspired by the work of Rubinstein, this study revisits data from a previous lab experiment to explore the relation between response times and tax compliance and understand the potential non-linearity between them by classifying decisions and individuals into compliance types. We find that individuals’ decision response time is related to their compliance decisions. Full-non compliant individuals (those who did not declare any earned income) have shorter response times than those who fully or partially complied. Full-compliant individuals also tend to declare income faster than partially compliant subjects. Such results are robust throughout time and when controlling for contextual characteristics of experimental design. We find non-linearity via an inverted U-shape function that reaches its maximum declaration time around a compliance rate of 60%, even after controlling for contextual experimental design factors. In addition, we observe a non-linear relation between cognitive skills, response time, and tax compliance. Participants with relatively high cognitive skills and very low or very high tax compliance level have low response times, while subjects with relatively lower cognitive skills tend to report higher decision times for higher compliance levels. View Full-Text
Keywords: response time; tax compliance; cognitive skill; income declaration; tax experiment response time; tax compliance; cognitive skill; income declaration; tax experiment
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MDPI and ACS Style

Chan, H.F.; Dulleck, U.; Torgler, B. Response Times and Tax Compliance. Games 2019, 10, 45.

AMA Style

Chan HF, Dulleck U, Torgler B. Response Times and Tax Compliance. Games. 2019; 10(4):45.

Chicago/Turabian Style

Chan, Ho Fai, Uwe Dulleck, and Benno Torgler. 2019. "Response Times and Tax Compliance" Games 10, no. 4: 45.

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