A self-funding reward mechanism for tax compliance

We compare in a laboratory experiment two audit-based tax compliance mechanisms that collect fines from those found non-compliant. The differ the way are redistributed to individuals who were either not audited or and be compliant. first, as is case most extant systems, does discriminate between un-audited second targets redistribution favor of find targeting increases when paying taxes generates social return. do any increase control treatment where compliant receive symbolic rewards. conclude existing have room for improvement by rewarding