Behavioral research in taxation: Recent advances and future prospects

Abstract

Behavioral tax research investigates the behavior of tax practitioners and taxpayers, mostly in a judgment/decision-making (JDM) context. We review and evaluate behavioral tax research since 1993, and provide suggestions for the direction of future research.

Tax practitioner JDM research has had two main foci: reporting positions, and information search and knowledge. Both have been fruitful, and should continue to be so. We place particular emphasis on improving studies of reporting position, especially in the areas of measurement, and internal and external validity.

Research on taxpayer behavior has been more diffuse, perhaps overly so. The JDM research may be dichotomized between that using compensated subjects (economics-based) and that using uncompensated subjects (chiefly psychology-based). These form distinct bodies of research that often appear incompatible because of differing methods and theoretical underpinnings. In addition to the JDM literature, there is a large body of research on taxpayer attitudes. This group of papers is highly heterogeneous, differing widely in theoretical development and relevance.

We recommend, in conclusion, that future behavioral research in taxation be better grounded in social science theory, and that more attention be paid to the representativeness of subjects.

Citation

O'Neil, C.J. and Samelson, D.P. (2001), "Behavioral research in taxation: Recent advances and future prospects", Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 103-139. https://doi.org/10.1016/S1474-7979(01)04070-4