Emotional hazard exemplified by taxation-induced anger.

Part of a special issue commemorating the 60th birthday of Bruno S. Frey. The writer examines the influence of anger-related emotions on economic behavior. He uses his findings to highlight a neglected kind of excess burden in tax theory: emotional hazard,r the risk of an efficiency loss resultin...

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Bibliographic Details
Published in:Kyklos Vol. 54; no. 2/3; pp. 491 - 507
Main Author: Winden, Frans van
Format: Article
Published: Wiley-Blackwell 2001
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Online Access:View this record in EBSCOhost
Description
Summary:Part of a special issue commemorating the 60th birthday of Bruno S. Frey. The writer examines the influence of anger-related emotions on economic behavior. He uses his findings to highlight a neglected kind of excess burden in tax theory: emotional hazard,r the risk of an efficiency loss resulting from emotional responses to taxation. He also develops a model of taxpayers' behavior and explores implications of his work for economic theory and policy.