Family Resource Allocation and Tax Decisions -- Field Experiment

Last registered on April 30, 2025
View Trial History

Pre-Trial

Trial Information

General Information

Title
Family Resource Allocation and Tax Decisions -- Field Experiment
RCT ID
AEARCTR-0015901
Initial registration date
April 28, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 30, 2025, 1:19 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Taiwan, Province of China
Region

Primary Investigator

Name
Kuan-Ming Chen
Affiliation
National Taiwan University
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2025-04-28
End date
2025-07-31
Keywords
Behavior, Finance & Microfinance, Labor
Additional Keywords
Family Decision, Tax
JEL code(s)
G5, H2, D1
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
In the Taiwanese context, the tax system allows older individuals to be claimed as dependents by a designated family member, typically one of their adult children. When claimed as a dependent, the adult child receives a deduction from their taxable income. If a parent has multiple adult children, it is most tax-efficient for the family to designate the child with the highest income as the claimant, since that child faces the highest marginal tax rate. However, administrative data reveal that many families do not make this optimal choice. Our randomized controlled trial (RCT) is designed to identify the underlying causes of this phenomenon. We randomly distribute flyers containing different information to households to see if these informational treatments alter households' tax reporting behaviors.

External Link(s)

Registration Citation

Citation
Chen, Kuan-Ming. 2025. "Family Resource Allocation and Tax Decisions -- Field Experiment." AEA RCT Registry. April 30. https://doi.org/10.1257/rct.15901-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
We randomly selected 45 villages in Taiwan. There are three treatment arms. The first is a control group, in which we do not intervene. The second is a treatment group that receives a flyer reminding households of the tax filing deadline. The third treatment arm receives a flyer explaining how to optimally allocate the claimant for the dependent deduction.

Intervention (Hidden)
Intervention Start Date
2025-04-28
Intervention End Date
2025-07-31

Primary Outcomes

Primary Outcomes (end points)
In one or two years, we will obtain IRS data on how families file their taxes. We will then compare households' tax filing behavior across the different treatment arms.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We randomly selected 45 villages in Taiwan. There are three treatment arms. The first is a control group, in which we do not intervene. The second is a treatment group that receives a flyer reminding households of the tax filing deadline. The third treatment arm receives a flyer explaining how to optimally allocate the claimant for the dependent deduction. The flyers are distributed right before the tax filing season.
Experimental Design Details
Randomization Method
Randomization done by the computer.
Randomization Unit
Village
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
45 villages
Sample size: planned number of observations
Around 45,000 households
Sample size (or number of clusters) by treatment arms
15,000 households for each treatment arm.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
National Taiwan University
IRB Approval Date
2025-03-23
IRB Approval Number
202503HS012
Analysis Plan

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials