Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela

Tax compliance is a big challenge in weakly institutionalized countries, in which citizens do not trust the State and prefer to evade. Can compliance be increased, and hence fiscal state capacity strengthened, using online strategies? We perform a randomized field experiment in Venezuela's capi...

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Detalles Bibliográficos
Autores Principales: Gallego, Jorge A., Ortega, Federico
Otros Autores: Facultad de Economía
Formato: Documento de trabajo (Working Paper)
Lenguaje:Inglés (English)
Publicado: 2018
Materias:
C93
H26
H71
O12
Acceso en línea:http://repository.urosario.edu.co/handle/10336/18720
id ir-10336-18720
recordtype dspace
spelling ir-10336-187202019-09-19T12:37:54Z Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela Gallego, Jorge A. Ortega, Federico Facultad de Economía Tax compliance Randomized controlled trial Fiscal capacity Online strategies Finanzas públicas Cumplimiento del contribuyente Impuestos Comunicaciones digitales C93 H26 H71 O12 Tax compliance is a big challenge in weakly institutionalized countries, in which citizens do not trust the State and prefer to evade. Can compliance be increased, and hence fiscal state capacity strengthened, using online strategies? We perform a randomized field experiment in Venezuela's capital, Caracas, to determine if email messages, Facebook ads, or a combination of both, can increase tax compliance. By varying the mechanism used to approach taxpayers, we are able to test if more direct and personalized methods, such as email messages, are more effective than general advertisement tools, such as Facebook ads. Moreover, our design allows us to test if both strategies complement each other and boost the capacity of a local government to increase compliance. Preliminary results suggest that these strategies are cost-effective methods for increasing tax revenues, even in a context of low confidence in the State, as is the case of Venezuela nowadays. 2018-11-19 2018-11-21T16:35:41Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/publishedVersion http://repository.urosario.edu.co/handle/10336/18720 eng Atribución-NoComercial-SinDerivadas 2.5 Colombia http://creativecommons.org/licenses/by-nc-nd/2.5/co/ info:eu-repo/semantics/openAccess application/pdf
institution EdocUR - Universidad del Rosario
collection DSpace
language Inglés (English)
topic Tax compliance
Randomized controlled trial
Fiscal capacity
Online strategies
Finanzas públicas
Cumplimiento del contribuyente
Impuestos
Comunicaciones digitales
C93
H26
H71
O12
spellingShingle Tax compliance
Randomized controlled trial
Fiscal capacity
Online strategies
Finanzas públicas
Cumplimiento del contribuyente
Impuestos
Comunicaciones digitales
C93
H26
H71
O12
Gallego, Jorge A.
Ortega, Federico
Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
description Tax compliance is a big challenge in weakly institutionalized countries, in which citizens do not trust the State and prefer to evade. Can compliance be increased, and hence fiscal state capacity strengthened, using online strategies? We perform a randomized field experiment in Venezuela's capital, Caracas, to determine if email messages, Facebook ads, or a combination of both, can increase tax compliance. By varying the mechanism used to approach taxpayers, we are able to test if more direct and personalized methods, such as email messages, are more effective than general advertisement tools, such as Facebook ads. Moreover, our design allows us to test if both strategies complement each other and boost the capacity of a local government to increase compliance. Preliminary results suggest that these strategies are cost-effective methods for increasing tax revenues, even in a context of low confidence in the State, as is the case of Venezuela nowadays.
author2 Facultad de Economía
author_facet Facultad de Economía
Gallego, Jorge A.
Ortega, Federico
format Documento de trabajo (Working Paper)
author Gallego, Jorge A.
Ortega, Federico
author_sort Gallego, Jorge A.
title Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
title_short Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
title_full Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
title_fullStr Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
title_full_unstemmed Can Facebook Ads and Email Messages Increase Fiscal State Capacity? Experimental Evidence from Venezuela
title_sort can facebook ads and email messages increase fiscal state capacity? experimental evidence from venezuela
publishDate 2018
url http://repository.urosario.edu.co/handle/10336/18720
_version_ 1645141148745859072
score 12,111491