Development and Validation of a Conceptual Model of Tax Avoidance Behavior Based on Behavioral Economics Theories: An Empirical Study in Iran
Keywords:
Behavioral economics,, tax avoidance, cognitive bias, social norm, institutional trust, structural equation modelingAbstract
This study aims to design and validate a conceptual model of Iranian taxpayers’ avoidance behavior based on behavioral economics theories. The research utilized a mixed-method design. In the qualitative phase, 13 semi-structured expert interviews were conducted and analyzed using open, axial, and selective coding based on grounded theory. In the quantitative phase, 384 valid responses were collected through stratified random sampling. Data were analyzed using Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) via AMOS. SEM results revealed that five variables—cognitive biases (β = 0.31), perceived tax justice (β = -0.28), institutional trust (β = -0.26), social norms (β = -0.22), and risk propensity (β = 0.35)—had significant effects on tax avoidance behavior (p < 0.05). The final model explained 62% of the variance in avoidance behavior (R² = 0.62). The findings suggest that behavioral and social dimensions, including cognitive distortions, justice perception, institutional trust, and social norms, play a decisive role in shaping taxpayers’ avoidance behavior and should be integrated into tax policy design alongside conventional enforcement mechanisms.
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