Zhixin Dai

Group Composition of Income Types and the Absolute-Relative Framing of Public Good Contributions

We present a simple model to analyze the efficacy of endogenous crackdowns, i.e., sudden and dramatic increases of audit probability triggered by a low level of compliance. We test this model experimentally. Our results show that: (a) compliance reacts quickly to the occurrence of crackdowns; (b) subjects report more than half of their income even during non-crackdown periods; (c) announcements of crackdown increase significantly tax compliance both when crackdowns are pre-announced and when they are announced ex post; (d) subjects are able to coordinate quickly to end crackdowns. Our results have important implications for policy-makers in terms of designing more effective crackdown policies.

10.2139/ssrn.2799955

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Citations (3)

SSRN Electronic Journal (2023)

Zhixin Dai Yutong Li Xianghong Wang

This paper examines the effect of absolute-relative framing on contributions to a public good in a group with income inequality. Group members have high and low endowments and the number of high-income members in each group varies between treatments. They make contributions without and with a minimum contribution level. We express the contribution metric either in absolute amount or as a relative proportion of a member’s initial endowment. We show that these institutional designs affect contribution behavior through shifting reference points in decisions. First, as the number of high-type members increases, the average contribution increases, especially among the low-type members in absolute framing. Second, the relative framing reduces average contribution amount, while it weakens the tendency of lowtypes to catch up with the contribution of high-types. Third, the difference in average contributions between absolute and relative conditions mostly disappears when the minimum contribution level is introduced. We discuss the implications of these results.

Framing (construction)

Absolute (philosophy)

10.2139/ssrn.4378554

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Military Hospital Accounting:Current Situation and Improvment

Hospital Administration Journal of Chinese People's Liberation Army (2011)

Cheating in the Lab Predicts Fraud in the Field: An Experiment in Public Transportation

The article analyzed the problems of military hospital accounting.For example the system of accounting statements faulty,inaccurate and low quality information,crude management regulation.Finally,some suggestions were put forward,which included adding ready currency tables in the hospital accounting system,adding the item of accumulative depreciation,improving the sharing proportion,and so on.

Depreciation (economics)

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Management Science (2017)

Cheating in the Lab Predicts Fraud in the Field: An Experiment in Public Transportations

We conduct an artefactual field experiment using a diversified sample of passengers of public transportation to study attitudes toward dishonesty. We find that the diversity of behavior in terms of (dis)honesty in laboratory tasks and in the field correlate. Moreover, individuals who have just been fined in the field behave more honestly in the lab than the other fare dodgers, except when context is introduced. Overall, we show that simple tests of dishonesty in the lab can predict moral firmness in life, although fraudsters who care about social image cheat less when behavior can be verified ex post by the experimenter. Data and the online appendix are available at https://doi.org/10.1287/mnsc.2016.2616 . This paper was accepted by Uri Gneezy, behavioral economics.

Honesty

Dishonesty

Sample (material)

10.1287/mnsc.2016.2616

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Citations (182)

The best fund manager in France: Christian Cambier

We conduct an artefactual field experiment using a diversified sample of passengers of public transportations to study attitudes towards dishonesty. We find that the diversity of behavior in terms of dis/honesty in laboratory tasks and in the field correlate. Moreover, individuals who have just been fined in the field behave more honestly in the lab than the other fare-dodgers, except when context is introduced. Overall, we show that simple tests of dishonesty in the lab can predict moral firmness in life, although frauders who care about social image cheat less when behavior can be verified ex post by the experimenter.

10.2139/ssrn.2731965

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Citations (3)

RePEc: Research Papers in Economics (2010)

Cheating in the Lab Predicts Fraud in the Field. An Experiment in Public Transportations

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Endogenous Crackdowns, Information Disclosure, and Tax Compliance: An Experimental Investigation

10.2139/ssrn.2725911

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Citations (9)

SSRN Electronic Journal (2019)

Cheating in the Lab Predicts Fraud in the Field - An Experiment in Public Transportations

Crackdowns have been widely recognized as an efficient means of deterrence. However, existing studies investigate only exogenous crackdowns. To fill this gap, we design an experiment in the context of tax evasion to analyze the efficacy of endogenous crackdowns, that is, sudden and dramatic increases of audit probability triggered by a low level of compliance. Our experimental results show that: (a) subjects react quickly to comply when crackdowns occur; (b) subjects report more than half their income even during non-crackdown periods; (c) announcements of crackdowns significantly increase tax compliance both when crackdowns are pre-announced and when they are announced ex post; and (d) subjects are able to coordinate quickly to end crackdowns. Our results may have important implications for policymakers in terms of designing more effective crackdown policies.

10.2139/ssrn.3401689

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Citations (1)