Using a Randomized Response Methodology to Collect Data for Tax Compliance Research.

Individuals often hesitate to respond to survey questions that deal with sensitive or embarrassing topics. Those who do respond often respond untruthfully. The randomized response (RR) method was developed to mitigate the effect of these two types of biases. Although RR has been used extensively in social science research, only one published study has used the technique in tax compliance research. To encourage its use in this area, this paper reviews many of the designs used in prior RR studies. In addition, one AR technique is illustrated with a question from an exploratory study completed by the authors. Finally, an agenda for future tax compliance research using RR methodology is suggested.