nep-cbe New Economics Papers
on Cognitive and Behavioural Economics
Issue of 2006‒05‒06
six papers chosen by
Marco Novarese
Universita del Piemonte Orientale

  1. Tax Compliance as the Result of a Psychological Tax Contract: The Role of Incentives and Responsive Regulation By Lars P. Feld; Bruno S. Frey
  2. Environmental Morale and Motivation By Bruno S. Frey; Alois Stutzer
  3. Who is “Behavioral”? Cognitive Ability and Anomalous Preferences By Daniel J. Benjamin; Sebastian A. Brown; Jesse M. Shapiro
  4. The cognitive style indicator: development of a new measurement instrument By Cools, E.; Van den Broeck, H.; Bouckenooghe, D.
  5. Linking behavioral control to frontline employee commitment and performance: a test of two alternative explanations using motivation theories By Dewettinck, K.; Buyens, D.
  6. The as-is journal review process: Let authors own their ideas By Eric W. K. Tsang; Bruno S. Frey

  1. By: Lars P. Feld; Bruno S. Frey
    Abstract: In this paper, we develop the concept of a psychological tax contract that goes beyond the traditional deterrence model and explains tax morale as a complicated interaction between taxpayers and the government. Based on crowding theory, the impact of deterrence and rewards on tax morale is discussed. As a contractual relationship implies duties and rights for each contract partner, sticking to the fiscal exchange paradigm between citizens and the state increases tax compliance. Citizens are willing to honestly declare income even if they do not receive a full public good equivalent to their tax payments as long as the political process is perceived to be fair and legitimate. At the procedural level, a friendly treatment of taxpayers by the tax office in auditing processes increases tax compliance.
    Keywords: Tax Compliance, Positive and Negative Incentives, Responsive Regulation
    JEL: H26 H73 D73 D78
    Date: 2006–04
  2. By: Bruno S. Frey; Alois Stutzer
    Abstract: This chapter discusses the role of environmental morale and environmental motivation in individual behavior from the point of view of economics and psychology. It deals with the fundamental public good problem, and presents empirical (laboratory and field) evidence on how the cooperation problem can be overcome. Four different theoretical approaches are distinguished according to how individuals’ underlying environmental motivation is modeled. Specifically, we look at the interaction between environmental policy and environmental morale through the lens of cognitive evaluation theory (also known as crowding theory).
    Keywords: environmental morale; environmental policy; motivation crowding; pro-social preferences; public good problem
    JEL: D64 H41 Q50 Z13
    Date: 2006–04
  3. By: Daniel J. Benjamin; Sebastian A. Brown; Jesse M. Shapiro
    Date: 2006–05–02
  4. By: Cools, E.; Van den Broeck, H.; Bouckenooghe, D.
    Abstract: This paper describes the development and validation of a cognitive style measure, the Cognitive Style Indicator (CoSI). Three studies were conducted to validate the CoSI. The first study consisted of 5924 employees who took part in a large-scale research with regard to career decisions. In the second study, 1580 people completed the CoSI as part of a ‘Competence Indicator’ tool on the Internet. Finally, the third study comprised 635 MBA students who completed the CoSI in the context of a ‘Management and Organization’ course. Reliability, item, and factor analyses demonstrated the internal consistency and homogeneity of three cognitive styles (knowing, planning, and creating style). In addition, substantial support was found for the instrument’s construct validity by including other cognitive style instruments, and personality and ability measures in the validation process. Criterion-related validity was confirmed by examination of the relationship between these cognitive styles and work-related charateristics. The main contributions of our research lie in (a) the development of a valid and reliable cognitive style instrument for use in organizations, and in (b) the further refinement of the analytic–intuitive cognitive style dimension by splitting the analytic pole in a knowing and a planning style.
    Date: 2006–04–25
  5. By: Dewettinck, K.; Buyens, D.
    Abstract: We propose and empirically test a model in which behavioral control is linked to frontline employee commitment and performance. We test two alternative explanations by examining the intermediate role of job autonomy and situational learning orientation. The hypotheses are tested using multiple-source survey data from a sample of 1184 frontline employees and their supervisors. Results indicate that situational learning orientation is an important construct in linking behavioral control to performance. Job autonomy shows to be important in explaining employee outcomes but is only marginally related to behavioral control. Theoretical and managerial implications are discussed.
    Date: 2006–04–27
  6. By: Eric W. K. Tsang; Bruno S. Frey
    Abstract: Recently, the problems associated with the existing journal review process aroused discussions from seasoned management researchers, who have also made useful suggestions for improving the process. To complement these suggestions, we propose a more radical change: a manuscript should be reviewed on an “as is” basis and its fate be determined in one round of review. The as-is review process shortens the time period from submission to final acceptance, reduces the workload of editors, referees and authors, provides frank author feedback to referees, and, most important, lets authors own all of the ideas in their publications.
    Keywords: Journals; reviews; authors; submissions
    JEL: Z0
    Date: 2006–03

This nep-cbe issue is ©2006 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.