Increasing Public Debt Collection with Nudging

Niels Holm Jensen, Lisbeth Fyhn Reuss, Stephan Rasmussen

Abstract


Using two natural field experiments, we tested whether nudging could contribute as a cost-free instrument to increase voluntary public debt collection. We manipulated standard reminder notices sent to two samples (N = 396 and N = 549) with public debt in a municipality in Denmark, a country with a high tax morale. Results from both studies showed that initial debt payment rates were significantly higher in intervention groups receiving a simplified, kind, and attractive reminder notice as compared to a control groups receiving a standard and complex reminder notice. The results suggest that nudging may contribute to public debt collection.


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Scandinavian Journal of Public Administration

School of Public Administration, Box 712 - SE-405 30 Göteborg

ISSN: 2001-7405, E-ISSN: 2001-7413