This book tackles political, social, and behavioural aspects of public finance and fiscal exchange. The book combines conventional approaches toward public finance with new developments in economics such as political governance, social and individual aspects of economic behaviour. It colligates public finance and behavioural economics and gathers original contributions within the emerging field of behavioural public finance.

The book addresses public finance topics by incorporating political, social, and behavioural aspects of economic decision-making, assuming the tax relationship is shaped by three dimensions of decision-making. Thus, it aims not only to reflect the interdisciplinary nature of public finance by bringing together scholars from various disciplines but also to examine public finance through the lens of political, social, and behavioural aspects. The book scrutinizes the relationship between political institutions, governance types, and public finance; it investigates the impact of social context, social capital, and societal cooperation on public finance; it explores behavioural biases of individual fiscal preferences.

This book is of interest to scholars, policymakers, tax professionals, business professionals, financers, university students, and researchers in the fields of public policy and economics.

M. Mustafa Erdogdu 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.

Savas 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.

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List of Contributors

Foreword - Richard Bird

Book Overview - M. Mustafa Erdogdu, Larissa Batrancea, Savas Çevik

1. Behavioral Public Finance in a Populist World - Vito Tanzi
2. Smart Decision-Makers, Institutional Design and X-Efficient (Real World Optimal) Public Finance - Morris Altman
3. Behavioral Economics and Public Policy - Julia Dobreva

PART TWO - BEHAVIOURAL RESPONSES TO REGULATIONS

4. Financial Decisions and Financial Regulation: Three Concepts of Performance-Based Regulation - Uwe Dulleck
5. Behavioral Biases and Political Actors: Three Examples from US International Taxation - Reuven S. Avi-Yonah & Kaijie Wu
6. Varieties of General Anti-Avoidance Legislation - John Prebble

PART THREE - TAX COMPLIANCE BEHAVIOUR: CASES

7. Political Economy of Tax Compliance Behavior: An Analysis of Three Cities in Turkey - M. Mustafa Erdogdu, Osman Geyik
8. Incidental Emotions, Integral Emotions, and Decisions to Pay Taxes - Janina Enachescu, Ziga Puklavec, Christian Martin Bauer, Jerome Olsen, Erich Kirchler, James Alm
9. Moral Concerns and Personal Beliefs regarding Tax Evasion: Empirical Results from Germany, Romania, Turkey, and the United Kingdom - Larissa Batrancea, Anca Nichita, Carla Startin, Ioan Chirila, Ioan Batrancea, Robert W. McGee, Serkan Benk, Tamer Budak
10. Paying Is Caring? Prosociality and Gender in Fiscal Compliance - John D'Attoma, Clara Volintiru, Antoine Malézieux
11. Tax Compliance Theories and Fiduciary Taxes: Do the Shoes Fit? - Elaine Doyle, Brian Keegan, Eoin Reeves
12. How to Tax the Powerful and the Sophisticated? - Paul Frijters, Katharina Gangl, Benno Torgler
13. Starbucks and Media Allegations of Tax Avoidance: An Examination of Reputational Loss - Yingyue Ding, Jane Frecknall-Hughes, Ja Ryong Kim
14. The Effect of Media on Tax Compliance: Hypothetical Scenarios Study - N. Tolga Saruç, Cigdem Börke Tunali, Hakan Yavuz, Tunç Ince