June 23, 2021

The Role of Social Influence in Enforcing Tax Compliance: Experimental Evidence from Nigeria

Economic development is linked with increased state capacity including the ability to mobilise domestic tax resources. For many developing countries, high levels of informality are a major constraint in this regard. Yet, economic incentives like changing the tax rate or increasing the filling and audit rate can be ineffective in a highly informal economic structure.

In this paper, we explore possible roles for behavioural interventions such as sharing information about peers’ tax behaviour to engineer higher tax compliance. Based on an artefactual field experiment among own account workers in Nigeria, we find that information interventions can play an important role in ensuring tax compliance.

Specifically, targeting information around what people can directly observe can be a way to improve tax compliance. Providing information on punishment or good practices that appeal to feelings of morality yields higher tax compliance.




CSEA participates in the African Economic Conference 2017

The 2017 African Economic Conference converged policymakers, researchers and development practitioners from Africa and around the world to make strategic contributions to the achievement of structur

CSEA Participates In Think Tank Initiative (TTI) Learning Events

The Think Tank Initiative in collaboration with Economic Policy Research Center (EPRC) and the African Capacity Building Foundation (ACBF) organized a roundtable learning event, May 19-22, 2014 in

Multidimensional Impact Evaluation:

Ending (extreme) poverty in all of its forms everywhere around the world continues to dominate the International Development Agenda (UN 2015). However, while poverty is declining in much of the developing world, data from the World Development Report (WDR) Conflict, Security, and Development reveal that fragile and conflict-affected states are lagging behind. The report points out that 'Poverty rates are 20 percentage points higher in countries affected by repeated cycles of violence over the last three decades. Indeed, with the worlds extreme poor over represented in fragile and conflict-affected ,some authors argue that violent conflict is development in reverse