Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Mental Accounting Effects of Income Tax Shifting

Bibliographic Data

ID19318031
AuthorsNaomi E Feldman (0000-0001-7053-9683, Ben-Gurion University of the Negev, corresponding author)
Year2010
Volume92
Issue1
Pages70-86
Publication date2010-02-01
Open AccessNo
TypeARTICLE
VenueThe Review of Economics and Statistics (JOURNAL)
Journal identifiersISSN: 0034-6535 • E-ISSN: 1530-9142
PublisherMIT Press (PUBLISHER • US)
DOI10.1162/rest.2009.11892
OpenAlexW2108805028
LanguageEN
Citations received5
References cited13

This paper analyzes a 1992 decrease in U.S. federal income tax withholding that shifted the timing of income tax payments while leaving ultimate tax burdens unchanged. Consequently income typically received as a lump-sum refund on filing a tax return was shifted into the previous year's monthly income. This paper considers the impact of the withholding change in the context of mental accounting and finds a decrease in the probability that households contributed to a tax-preferred retirement account. Additional robustness tests show that short-term saving did not simultaneously increase and that the main findings are not driven by liquidity constraints

Actuarial science · Context (archaeology) · Economics · Gross income · Income tax · Labour economics · Market liquidity · Mental accounting · Monetary economics · Payment · Public economics · Robustness (evolution) · State income tax · Tax reform · Finance · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics

  • Temporal framing of tax stimuli and household consumption

    Open Access•Thomas Pauls, Marten Laudi•Journal of Economic Behavior &…•2025

  • Can intergenerational leadership resolve the innovation dilemma caused by pay mental discount?—— A dual mediation model of workplace Well-being and proactive behavior

    Open Access•Li-Ping Wang•Current Psychology•2025

  • Big Tax Data and Economic Analysis

    Derek Messacar•Canadian Public Policy•2017

  • Behavioral Impediments to Valuing Annuities

    Jeffrey R Brown, Arie Kapteyn et al.•The Review of Economics and…•2021

  • Mental accounting of income tax and value added tax among self-employed business owners

    Open Access•Jerome Olsen, Matthias Kasper et al.•Journal of Economic Psychology•2019

  • The Behavioral Life‐cycle Hypothesis

    Open Access•Hersh Shefrin, Hersh M Shefrin et al.•Economic Inquiry•1988

  • Loss Aversion in Riskless Choice

    Amos Tversky, Daniel Kahneman•The Quarterly Journal of Economics•1991

  • Prospect Theory

    Daniel Kahneman, Amos Tversky•Econometrica•1979

  • Theory of the Consumption Function

    Milton Friedman•Theory of the Consumption Function•1957

  • An Introduction to the Taxsim Model

    Open Access•Daniel Feenberg, Elisabeth Coutts•Journal of Policy Analysis and…•1993

Citations per year0.56
Citation span2017 - 2025 (9)
Highly citedNo

Tools

Open DOISci-HubOpen Access
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae