Tag Archives: laboratory experiment

People react less to tax changes if tax rules are complex

How does a tax system’s complexity affect people’s reaction to tax changes? A new IZA Discussion Paper by Johannes Abeler and Simon Jäger answers this question by conducting a laboratory experiment. Participants are either faced with a simple or a … Continue reading

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Eat sugar and make better choices

Formal economic models rarely consider the mental conditions of individuals when analyzing their behavior and the decisions they make. In reality, people do this all the time: it seems common sense not to ask friends, family or colleagues to perform … Continue reading

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