nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2020‒04‒06
two papers chosen by

  1. How do Taxpayers Respond to Public Disclosure and Social Recognition Programs? Evidence from Pakistan By Joel Slemrod; Obeid Ur Rehman; Mazhar Waseem
  2. Bridging financial reporting research and policy: a discussion of “the impact of accounting standards on pension investment decisions” By Cascino, Stefano

  1. By: Joel Slemrod; Obeid Ur Rehman; Mazhar Waseem
    Abstract: We examine two Pakistani programs to see if the public disclosure of tax information and social recognition of top taxpayers promote tax compliance. Pakistan began revealing income tax paid by every taxpayer in the country from 2012. Simultaneously, another program began recognizing and rewarding the top 100 tax paying corporations, partnerships, self-employed individuals, and wage-earners. We find that both programs induced strong compliance responses. The public disclosure caused on average a 9 log-points increase in the tax paid by individuals exposed to the program. The increase was even larger for the social recognition program, around 17 log-points. Our results suggest that such programs can be important policy levers to mobilize resources, especially in weak-enforcement-capacity economies.
    Keywords: tax evasion, income tax, social norms
    JEL: H24 H25 H26
    Date: 2020
  2. By: Cascino, Stefano
    Abstract: Barthelme et al. (2018) examine the real effects of pension accounting regulation and provide evidence consistent with the claim that recent changes in financial reporting rules affect pension asset allocation decisions. Their study offers an interesting opportunity to highlight the importance of evidence-based policymaking in the field of financial reporting. I discuss some empirical challenges that the authors face to causally identify the effects they examine to show how a closer cooperation between academia and regulators can enable researchers to overcome identification challenges and help produce even more policy-relevant research.
    Keywords: regulation; evidence-based policymaking; accounting standards; pension asset allocation; IAS 19R; real effects
    JEL: A11 G18 G30 G32 G38 K22 L51 M41
    Date: 2018–09–19

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