Media negativity bias and tax compliance: experimental evidence

Milos Fisar; Tommaso Reggiani; Fabio Sabatini; Jiří Špalek

doi:10.1007/s10797-021-09706-w

Media negativity bias and tax compliance: experimental evidence

Milos Fisar, Tommaso Reggiani, Fabio Sabatini, Jiří Špalek

Competence Center for Experimental Research

Publication: Scientific journal › Journal article › peer-review

Abstract

We study the impact of the media negativity bias on tax compliance. Through a framed laboratory experiment, we assess how the exposure to biased news about government action afects compliance in a repeated taxation game. Subjects treated with positive news are signifcantly more compliant than the control group. Instead, the exposure to negative news does not prompt any signifcant reaction compared to the neutral condition, suggesting that participants may perceive the media negativ‑ ity bias in the selection and tonality of news as the norm rather than the exception. Overall, our results suggest that biased news provision is a constant source of psy‑ chological priming and plays a vital role in taxpayers’ compliance decisions.

Original language	English
Journal	International Tax and Public Finance
DOIs	https://doi.org/10.1007/s10797-021-09706-w
Publication status	Published - 2021

Austrian Classification of Fields of Science and Technology (ÖFOS)

502024 Public economy

Access to Document

10.1007/s10797-021-09706-wLicence: Unspecified

https://epub.wu.ac.at/id/file/164008Licence: CC BY

SFX availability

Full text

Cite this

@article{066afa7fed33423a8a15036dacf3fcd1,

title = "Media negativity bias and tax compliance: experimental evidence",

abstract = "We study the impact of the media negativity bias on tax compliance. Through a framed laboratory experiment, we assess how the exposure to biased news about government action afects compliance in a repeated taxation game. Subjects treated with positive news are signifcantly more compliant than the control group. Instead, the exposure to negative news does not prompt any signifcant reaction compared to the neutral condition, suggesting that participants may perceive the media negativ‑ ity bias in the selection and tonality of news as the norm rather than the exception. Overall, our results suggest that biased news provision is a constant source of psy‑ chological priming and plays a vital role in taxpayers{\textquoteright} compliance decisions.",

author = "Milos Fisar and Tommaso Reggiani and Fabio Sabatini and Ji{\v r}{\'i} {\v S}palek",

year = "2021",

doi = "10.1007/s10797-021-09706-w",

language = "English",

journal = "International Tax and Public Finance",

issn = "0927-5940",

publisher = "Springer New York",

}

TY - JOUR

T1 - Media negativity bias and tax compliance: experimental evidence

AU - Fisar, Milos

AU - Reggiani, Tommaso

AU - Sabatini, Fabio

AU - Špalek, Jiří

PY - 2021

Y1 - 2021

N2 - We study the impact of the media negativity bias on tax compliance. Through a framed laboratory experiment, we assess how the exposure to biased news about government action afects compliance in a repeated taxation game. Subjects treated with positive news are signifcantly more compliant than the control group. Instead, the exposure to negative news does not prompt any signifcant reaction compared to the neutral condition, suggesting that participants may perceive the media negativ‑ ity bias in the selection and tonality of news as the norm rather than the exception. Overall, our results suggest that biased news provision is a constant source of psy‑ chological priming and plays a vital role in taxpayers’ compliance decisions.

AB - We study the impact of the media negativity bias on tax compliance. Through a framed laboratory experiment, we assess how the exposure to biased news about government action afects compliance in a repeated taxation game. Subjects treated with positive news are signifcantly more compliant than the control group. Instead, the exposure to negative news does not prompt any signifcant reaction compared to the neutral condition, suggesting that participants may perceive the media negativ‑ ity bias in the selection and tonality of news as the norm rather than the exception. Overall, our results suggest that biased news provision is a constant source of psy‑ chological priming and plays a vital role in taxpayers’ compliance decisions.

U2 - 10.1007/s10797-021-09706-w

DO - 10.1007/s10797-021-09706-w

M3 - Journal article

JO - International Tax and Public Finance

JF - International Tax and Public Finance

SN - 0927-5940

ER -