Uncovering Sensitivity of Tax Evasion Disclosure: A Combined Vignette and List Experimental Approach

• In Event: Baltic Political Economies in a Broader Perspective

Abstract

This study, conducted across Latvia, Denmark and Italy, explores how social context influences sensitivity bias in surveys on tax evasion. Utilizing a novel combination of list and vignette experiments, the research aims to uncover the true extent of tax evasion and the impact of social norms on reporting behavior. The experiment involved two primary conditions based on traditional list experimental design, supplemented by two additional conditions incorporating vignettes. Participants estimated the percentage of their fellow citizens who find undeclared work unacceptable, followed by revealing the actual levels, thus examining the influence of perceived social norms on social desirability bias. The findings offer significant contributions to understanding tax compliance behavior, highlighting the potential of indirect measurement techniques in capturing sensitive behaviors and shaping tax policy development.

Short Bio

Andris Saulītis, PhD, serves as the Principal Investigator for the research project "Tax Morale and Social Desirability Bias: Examining the Shadow Economy Experimentally" (TAXMORALBIAS) at Collegio Carlo Alberto, a project recognized and supported by the European Commission through the Marie Skłodowska-Curie Actions Postdoctoral Fellowship under the Horizon Europe research program. Andris holds a Master’s degree in Social Anthropology from The New School for Social Research in the USA and a PhD in Sociology from the European University Institute in Italy. Central to Andris' work is his expertise in nudging, field experiments, behavioural insights, and experimental methods. He has carried out numerous field experiments, teaming up with both businesses and governmental bodies, addressing diverse issues from debt collection and recycling behaviour to vaccine uptake and tax compliance.

Author

• Andris Saulītis, University of Latvia