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Replication data for: Complex Tax Incentives

Version
1
Resource Type
Dataset
Creator
  • Abeler, Johannes
  • Jäger, Simon
Publication Date
2015-08-01
Description
  • Abstract

    How does complexity affect people's reaction to tax changes? To answer this question, we conduct an experiment in which subjects work for a piece rate and face taxes. One treatment features a simple tax system, the other a complex one. Subjects' economic incentives are identical across treatments. We introduce the same sequence of additional taxes in both treatments. Subjects in the complex treatment underreact to new taxes; some ignore new taxes entirely. The underreaction is stronger for subjects with lower cognitive ability. Contrary to predictions from models of rational inattention, subjects are equally likely to ignore large or small incentive changes (JEL D14, H24, H31)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/pol.20130137 (Text)
Publications
  • Abeler, Johannes, and Simon Jäger. “Complex Tax Incentives.” American Economic Journal: Economic Policy 7, no. 3 (August 2015): 1–28. https://doi.org/10.1257/pol.20130137.
    • ID: 10.1257/pol.20130137 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Abeler, Johannes; Jäger, Simon (2015): Replication data for: Complex Tax Incentives. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116499V1