Behavioural Public Finance

M. Mustafa Erdoğdu is Professor of Economics at Marmara University, Istanbul, Turkey, where he is head of the Financial Economics division. He received his MA and PhD in development economics from Manchester University, UK. His research interests are economic development, public finance, international political economy, institutions, financial crises, sustainability, and renewable energies.Larissa Batrancea is Associate Professor of Corporate Finance at Babes-Bolyai University, Cluj-Napoca, Romania. Her research addresses tax behaviour, experimental economics, neuroeconomics, financial analysis. She activated as principal investigator/member in 16 international/national research grants. She has been awarded 12 prizes for excellence in research and teaching.Savaş Çevik is a Professor in the Department of Economics at Selcuk University in Turkey. He received his MS and PhD degrees in public finance from Marmara University. His research interests are in public economics, the economics and politics of taxation, and behavioural economics.

"This book is a valuable contribution to our understanding of Behavioural Public Finance with chapters by distinguished scholars focusing on decision-making, public policy, regulation and tax compliance and covering both theoretical insights and important empirical research." — Simon James, Honorary Associate Professor in Economics at the University of Exeter Business School, UK."Behavioural Public Finance is a must read for anyone who is interested in public finance and taxation. The original, intelligent and thoughtful chapters written by international experts represent an important and influential contribution to the field." — John Hasseldine, Professor of Accounting & Taxation, University of New Hampshire, USA."I suppose Adam Smith would have been very happy if he could have seen how the powerful arguments from his famous 1759 book Theory of Moral Sentiments are reflected 250 years later in this beautiful volume on the economic psychology / behavioural economics of public finance, regulation and tax compliance." — Henk Elffers, Professor Emeritus, Department of Criminal Law and Criminology, VU University, Amsterdam, Netherlands"It is really praiseworthy that a key part of book is devoted to tax compliance behaviour" — Gaetano Lisi, Associate Professor in Economic Policy, University of Cassino and Southern Lazio, Italy."This book is an excellent introduction to the interesting field of Behavioural Public Finance. It provides a comprehensive overview of this discipline with strong emphasis on regulation, tax compliance, and how the tax revenue can be achieved. The editors did a tremendous job in gathering some of the most highly respected scholars, which makes this volume a valuable read for scientists, students, and practitioners." — Stephan Muehlbacher, Professor of Work, Organizational, and Economic Psychology, Karl Landsteiner University of Health Sciences, Krems, Austria."A valuable resource for behavioural economists, economic psychologists and policymakers, this book collects original studies on innovative topics, such as the history of taxation for the plutocrats, the effect of media on public finance behaviours, along with several case studies on behavioural responses to regulations. A must-read for those interested in behavioral aspects of public finance." — Edoardo Lozza, Professor of Economic Psychology, Università Cattolica, Milan, Italy."A thought provoking and contemporary contribution to the Behavioural Public Finance literature. This book is essential reading for students, scholars and anyone interested in gaining a wider appreciation of this expanding area of public finance." — Adrian Sawyer, Professor of Taxation, UC Business School, University of Canterbury, Christchurch, New Zealand."Many of the ideas and approaches explored, discussed, and utilized in this book may, over time, lead to further fruitful explorations of this still new terrain, enriching and improving our understanding of this important dimension of the relationships between state and society, which have come increasingly to shape how people everywhere in the world go about the ordinary business of their lives … Students, scholars, and analysts can all find material for thought and some suggestions and lessons to guide future work in this book." — Richard Bird, Professor Emeritus of Economic Analysis and Policy, Rotman School of Management, University of Toronto, Canada.

• Book Overview PART ONE – THEORETICAL CONSIDERATIONS ON BEHAVIOURAL PUBLIC FINANCE 1. Behavioral Public Finance in a Populist World 2. Smart Decision-Makers, Institutional Design and X-Efficient (Real World Optimal) Public Finance 3. Behavioral Economics and Public Policy PART TWO – BEHAVIOURAL RESPONSES TO REGULATIONS 4. Financial Decisions and Financial Regulation: Three Concepts of Performance-Based Regulation 5. Behavioral Biases and Political Actors: Three Examples from US International Taxation 6. Varieties of General Anti-Avoidance Legislation PART THREE – TAX COMPLIANCE BEHAVIOUR: CASES 7. Political Economy of Tax Compliance Behavior: An Analysis of Three Cities in Turkey 8. Incidental Emotions, Integral Emotions, and Decisions to Pay Taxes 9. Moral Concerns and Personal Beliefs regarding Tax Evasion: Empirical Results from Germany, Romania, Turkey, and the United Kingdom 10. Paying Is Caring? Prosociality and Gender in Fiscal Compliance 11. Tax Compliance Theories and Fiduciary Taxes: Do the Shoes Fit? 12. How to Tax the Powerful and the Sophisticated? 13. Starbucks and Media Allegations of Tax Avoidance: An Examination of Reputational Loss 14. The Effect of Media on Tax Compliance: Hypothetical Scenarios Study