A Note on the Relation between Frames,Perceptions, and Taxpayer Behavior*

In this study, we incorporate taxpayers' threat /opportunity perceptions into our analysis of taxpayer behavior in order to refine and extend our understanding of the internal cognitive forces that shape taxpayer behavior. Decision‐making frames (that is, the gain and loss domains from the prospect theory value function) and individual perceptions (that is, perceptions of decision alternatives as being threats or opportunities) are both likely to influence behavior, yet prior research has generally ignored the behavioral effects of individual perceptions. The results of our experiment reveal that taxpayers who are due a tax refund (owe additional taxes) prior to considering a judgemental tax deduction tend to perceive the conservative (aggressive) tax deduction to be more of an opportunity/less of a threat. In turn, we find that taxpayer frames have a direct effect on taxpayer behavior and an indirect effect on behavior through their effect on taxpayers' threat/opportunity perceptions. Perhaps the most important message of this study is that researchers can advance our understanding of the internal cognitive processes that shape taxpayer behavior by incorporating taxpayer perceptions into their research designs.     

Logit Price Dynamics

We model retail price stickiness as the result of costly, error‐prone decision making. Under our assumed cost function for the precision of choice, the timing of price adjustments and the prices firms set are both logit random variables. Errors in the prices firms set help explain micro facts related to the size of price changes, the behavior of adjustment hazards, and the variability of prices and costs. Errors in adjustment timing increase the real effects of monetary shocks, by reducing the “selection effect.” Allowing for both types of errors also helps explain how trend inflation affects price adjustment.     

Line-drying versus machine-drying: energy consumption comparison

The purpose of this study was to determine the physical energy utilized in machine-drying and the human energy utilized in line-drying with a standard test laundry load in order to demonstrate the benefits of making a trade-off between mechanized energy and human energy utilized in drying laundry. Comparatively, only a small amount of metabolic energy was utilized in line-drying. Line-drying laundry over an extended period of time, along with similar trade-offs with other household tasks to use more human energy and less mechanized energy, would save energy resources and would contribute to physical health by increasing exercise levels. All data collection occurred at California Polytechnic State University, San Luis Obispo.