When happy people make society unhappy: Emotions affect tax compliance behavior

Hechtner F, Mohr P, Fochmann M, Kirchler E (2025)

Publication Language: English

Publication Type: Journal article

Publication year: 2025

Journal

Journal of Economic Behavior & Organization Elsevier

Book Volume: 229

Article Number: 106854

Journal Issue: 229

DOI: 10.1016/j.jebo.2024.106854

Open Access Link: https://doi.org/10.1016/j.jebo.2024.106854

Abstract

Emotions affect judgments and decision making. Our paper presents a study to show that incidental background emotions (i.e., emotions not related to the actual decision) influence individuals’ tax compliance attitudes and behavior. A large-scale survey of 22,220 German taxpayers and a controlled laboratory experiment provide evidence that positive background emotions reduce willingness to comply compared to aversive (negative) background emotions. The participants in our survey show less favorable tax compliance attitudes on weekends, which are usually associated with more positive background emotions. These findings are supported by the results of a controlled laboratory experiment in which background emotions were induced by standardized pictures. Individuals choose to evade taxes more often after being exposed to positive emotions than after being exposed to aversive emotions.

Authors with CRIS profile

Frank Hechtner Lehrstuhl für Betriebswirtschaftliche Steuerlehre

Involved external institutions

Freie Universität Berlin DE Germany (DE) Universität Wien / University of Vienna AT Austria (AT)

How to cite

APA:

Hechtner, F., Mohr, P., Fochmann, M., & Kirchler, E. (2025). When happy people make society unhappy: Emotions affect tax compliance behavior. Journal of Economic Behavior & Organization, 229(229). https://doi.org/10.1016/j.jebo.2024.106854

MLA:

Hechtner, Frank, et al. "When happy people make society unhappy: Emotions affect tax compliance behavior." Journal of Economic Behavior & Organization 229.229 (2025).

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