Abstract The effect of the tax reporting behavior of one's peers on taxpayer compliance was exam med in this experimental study using prospective jurors. A hypothetical reporting decision was affected by the type of income to be reported, but, contrary to implications from prior studies, it was not directly affected by the peer manipulations. The study also explored the influence of variables cited in prior studies. The results showed that attitudes toward evading taxes and previous tax evasion were significant factors in explaining the experimental reporting decision. Those two variables were then analyzed to examine which background variables were the most salient in explaining tax attitude and actual past evasion.
Peggy A. Hite (Tue,) studied this question.