The Evaluation of Tax Reform from the Perspective of Behavioral Economics: the Turkish Case

Secilmis E., DİDİNMEZ İ.

BILIG, no.77, pp.203-232, 2016 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Publication Date: 2016
  • Journal Name: BILIG
  • Journal Indexes: Social Sciences Citation Index, Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.203-232


In this study, we researched whether lawmakers use the predictions of behavioral economics in which psychology and economics are combined, when designing the Turkish tax system. For this purpose, we investigated the "Corporate Tax Law (No: 5520)" and the "Value Added Tax Law (No: 3065)" from the perspective of the concepts of tax compliance and fiscal illusion. The system, developed by Tomer, was used for the evaluation; in this way the effects of behavioral tendencies on tax policies were examined. In conclusion, this study demonstrated that lawmakers care about the principles of behavioral economics in order to create fiscal illusion; while this is not the case for tax compliance.