This book tackles political, social, and behavioural aspects of public finance and fiscal exchange. The book combines conventional approaches toward public finance with new developments in economics such as political governance, social and individual aspects of economic behaviour. It colligates public finance and behavioural economics and gathers original contributions within the emerging field of behavioural public finance.
The book addresses public finance topics by incorporating political, social, and behavioural aspects of economic decision-making, assuming the tax relationship is shaped by three dimensions of decision-making. Thus, it aims not only to reflect the interdisciplinary nature of public finance by bringing together scholars from various disciplines but also to examine public finance through the lens of political, social, and behavioural aspects. The book scrutinizes the relationship between political institutions, governance types, and public finance; it investigates the impact of social context, social capital, and societal cooperation on public finance; it explores behavioural biases of individual fiscal preferences.
This book is of interest to scholars, policymakers, tax professionals, business professionals, financers, university students, and researchers in the fields of public policy and economics.
List of Figures
List of Tables
List of Contributors
Foreword – Richard Bird
Book Overview – M. Mustafa Erdoğdu, Larissa Batrancea, Savaş Çevik
PART ONE – THEORETICAL CONSIDERATIONS ON BEHAVIOURAL PUBLIC FINANCE
- Behavioral Public Finance in a Populist World – Vito Tanzi
- Smart Decision-Makers, Institutional Design and X-Efficient (Real World Optimal) Public Finance – Morris Altman
- Behavioral Economics and Public Policy – Julia Dobreva
- Financial Decisions and Financial Regulation: Three Concepts of Performance-Based Regulation – Uwe Dulleck
- Behavioral Biases and Political Actors: Three Examples from US International Taxation – Reuven S. Avi-Yonah & Kaijie Wu
- Varieties of General Anti-Avoidance Legislation – John Prebble
- Political Economy of Tax Compliance Behavior: An Analysis of Three Cities in Turkey – M. Mustafa Erdoğdu, Osman Geyik
- Incidental Emotions, Integral Emotions, and Decisions to Pay Taxes – Janina Enachescu, Žiga Puklavec, Christian Martin Bauer, Jerome Olsen, Erich Kirchler, James Alm
- Moral Concerns and Personal Beliefs regarding Tax Evasion: Empirical Results from Germany, Romania, Turkey, and the United Kingdom – Larissa Batrancea, Anca Nichita, Carla Startin, Ioan Chirila, Ioan Batrancea, Robert W. McGee, Serkan Benk, Tamer Budak
- Paying Is Caring? Prosociality and Gender in Fiscal Compliance – John D'Attoma, Clara Volintiru, Antoine Malézieux
- Tax Compliance Theories and Fiduciary Taxes: Do the Shoes Fit? – Elaine Doyle, Brian Keegan, Eoin Reeves
- How to Tax the Powerful and the Sophisticated? – Paul Frijters, Katharina Gangl, Benno Torgler
- Starbucks and Media Allegations of Tax Avoidance: An Examination of Reputational Loss – Yingyue Ding, Jane Frecknall-Hughes, Ja Ryong Kim
- The Effect of Media on Tax Compliance: Hypothetical Scenarios Study – N. Tolga Saruç, Cigdem Börke Tunalı, Hakan Yavuz, Tunç İnce
PART TWO – BEHAVIOURAL RESPONSES TO REGULATIONS
PART THREE – TAX COMPLIANCE BEHAVIOUR: CASES
"This book is a valuable contribution to our understanding of Behavioural Public Finance with chapters by distinguished scholars focusing on decision-making, public policy, regulation and tax compliance and covering both theoretical insights and important empirical research." — Simon James, Honorary Associate Professor in Economics at the University of Exeter Business School, UK.
"Behavioural Public Finance is a must read for anyone who is interested in public finance and taxation. The original, intelligent and thoughtful chapters written by international experts represent an important and influential contribution to the field." — John Hasseldine, Professor of Accounting & Taxation, University of New Hampshire, USA.
"I suppose Adam Smith would have been very happy if he could have seen how the powerful arguments from his famous 1759 book Theory of Moral Sentiments are reflected 250 years later in this beautiful volume on the economic psychology / behavioural economics of public finance, regulation and tax compliance." — Henk Elffers, Professor Emeritus, Department of Criminal Law and Criminology, VU University, Amsterdam, Netherlands
"It is really praiseworthy that a key part of book is devoted to tax compliance behaviour" — Gaetano Lisi, Associate Professor in Economic Policy, University of Cassino and Southern Lazio, Italy.
"This book is an excellent introduction to the interesting field of Behavioural Public Finance. It provides a comprehensive overview of this discipline with strong emphasis on regulation, tax compliance, and how the tax revenue can be achieved. The editors did a tremendous job in gathering some of the most highly respected scholars, which makes this volume a valuable read for scientists, students, and practitioners." — Stephan Muehlbacher, Professor of Work, Organizational, and Economic Psychology, Karl Landsteiner University of Health Sciences, Krems, Austria.
"A valuable resource for behavioural economists, economic psychologists and policymakers, this book collects original studies on innovative topics, such as the history of taxation for the plutocrats, the effect of media on public finance behaviours, along with several case studies on behavioural responses to regulations. A must-read for those interested in behavioral aspects of public finance." — Edoardo Lozza, Professor of Economic Psychology, Università Cattolica, Milan, Italy.
"A thought provoking and contemporary contribution to the Behavioural Public Finance literature. This book is essential reading for students, scholars and anyone interested in gaining a wider appreciation of this expanding area of public finance." — Adrian Sawyer, Professor of Taxation, UC Business School, University of Canterbury, Christchurch, New Zealand.
"Many of the ideas and approaches explored, discussed, and utilized in this book may, over time, lead to further fruitful explorations of this still new terrain, enriching and improving our understanding of this important dimension of the relationships between state and society, which have come increasingly to shape how people everywhere in the world go about the ordinary business of their lives … Students, scholars, and analysts can all find material for thought and some suggestions and lessons to guide future work in this book." — Richard Bird, Professor Emeritus of Economic Analysis and Policy, Rotman School of Management, University of Toronto, Canada.