Behavioral Taxation: A Brief Narrative Review

This paper examines the behavioral aspects of taxation and their implications for decision-making, focusing on tax policies, tax misperception, and the role of social norms in shaping taxpayer behavior. Drawing on experimental studies and behavioral models, the research explores how tax-related biases, such as tax aversion and framing effects, influence risky investment decisions. It also delves into the impact of tax morale and social reciprocity on compliance, especially in the context of policy measures aimed at managing economic disruptions such as the COVID-19 pandemic. The findings provide insights into the interplay between tax policy design, public perception, and taxpayer behavior, emphasizing the importance of behavioral economics in shaping tax compliance strategies.