Experimental Design
We will conduct a randomized controlled trial (RCT) with a sample of 3,000 German individuals that own residential property. Participants will be randomly assigned to one of three groups survey groups: a control group and two treatment groups.
The first treatment group will receive detailed information about the property tax reform, followed by questions about their personal experience with the change to recollect their feelings after being confronted with the tax assessment notice. The second treatment group will receive the same information and questions, along with a brief explanation of how the tax revenues are used at the local level.
After these treatment interventions, we will measure participants’ perceptions of fairness regarding the property tax they have to pay as our main outcome variable. We also elicit participants’ general satisfaction with the tax system and their current level of happiness to evaluate the broader effects of fiscal adjustments.
Additionally, we will include post-treatment survey questions to collect detailed information on participants’ socio-demographic characteristics including living situation, personality traits, trust in institutions, and political attitudes.
We expect that sensitivity to the tax change varies with sociodemographic factors and personality traits. Comparing the control and the first treatment group, we hypothesize that the response to tax increases is moderated by locus of control, institutional trust and the length of ownership. Investigating the effects of information on how taxes are used, we hypothesize that having children, satisfaction with the local administration and regional identity will moderate the effects.