Research Article
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Analysis of Factors Affecting Loss Aversion from a Behavioral Public Finance Perspective

Year 2022, Volume: 8 Issue: 2, 68 - 82, 31.12.2022

Abstract

Kahneman and Tversky introduced the prospect theory in their work published in 1979. Prospect theory has brought a new perspective to rational decision making. A rational individual is expected to attribute equal value to gain with the same amount of loss. However, the findings of experimental studies do not confirm this expectation and show the opposite. Loss aversion, which is one of the subjects discussed within the scope of prospect theory, is that an individual who compares the same amount of loss with the gain attributes more value to this loss than to the gain. Loss aversion is an important psychological concept that is receiving increasing attention in economic analysis. Experimental studies revealing that the psychology of taxpayers has an important place in their attitudes and behaviors towards taxes has given a new direction to the field of behavioral public finance. The aim of this study is to determine the factors affecting loss aversion from a behavioral finance perspective. Data were collected from 817 participants with the questionnaire technique. Logit regression model was used in the analysis of the data obtained by convenience sampling method. The loss aversion ratio, which was estimated at 2.25 by Tversky and Kahneman, was estimated at 4.50. Based on our findings, it can be argued that as the risk level of individuals increases, the rate of loss aversion decreases and as the population of the region they live in increases, the rate of loss aversion increases.

References

  • Abdellaoui, M., Bleichrodt, H. & Paraschiv, C. (2007). Loss Aversion under Prospect Theory: A Parameter-Free Measurement. Management Science, 50(10), 1659-1674.
  • Akyol, K. (2012). Biyokimya ve Hemogram Laboratuvar Test Sonuçlarının Lojistik Regresyon Yöntemiyle Analizi. (Yayımlanmamış Yüksek Lisans Tezi). Karabük Üniversitesi Fen Bilimleri Enstitüsü, Karabük.
  • Ariely, D., Huber, J. & Wertenbroch, K. (2005). When Do Losses Loom Larger than Gains?. Journal of Marketing Research, 42, 134-138.
  • Balaz, V., Bacova, V., Drobna, E., Dudekova, K. & Adamik, K. (2013). Testing Prospect Theory Parameters. Ekonomický časopis, 61(7), 655-671.
  • Bernasconi, M. & Zanardi, A. (2004). Tax evasion, tax rates and reference dependence. FinanzArchiv, 60(3), 422-445. Bleichrodt, H., Pinto, J. L. & Wakker. P. P. (2001). Using descriptive findings of prospect theory to improve the prescriptive use of expected utility. Management Science, 47(11), 1498-1514.
  • Booij, A. S. & van de Kuilen. G. (2006). A parameter-free analysis of the utility of money for the general population under prospect theory. Working paper, University of Amsterdam, Amsterdam, The Netherlands. 
  • Brenner, L., Rottenstreich, Y., Sood, S., & Bilgin, B. (2007). On The Psychology of Loss Aversion: Possession, Valence, and Reversals of The Endowment Effect. Journal of Consumer Research, 34(3), 369-376.
  • Camerer, C. F. (2005). Three Cheers-Psychological, Theoretical, Empirical-for Loss Aversion. Journal of Marketing Research, 42(2), 129-133.
  • Choo, L., Fonseca, M.A. & Myles, G. D. (2016). Do Students Behave Like Real Taxpayers in the Lab? Evidence from a Real Effort Tax Compliance Experiment. Journal of Economic Behavior & Organization, 124, 102-114.
  • Engström, P., Nordblom, K. & Stefánsson, A. (2022). Loss aversion and indifference to tax rates: Evidence from tax filing data. Journal of Economic Behavior & Organization, 200, 287-311.
  • Engström, P., Nordblom, K., Ohlsson, H. & Persson, A. (2015). Tax Compliance and Loss Aversion. American Economic Journal: Economic Policy, 7(4), 132-164.
  • Fishburn, P. C. & Kochenberger. G. A. (1979). Two-piece von Neumann Morgenstern utility functions. Decision Sciences, 10(4), 503-518.
  • Henderson, D. R. (2005). Daniel Kahneman. In; The Concise Encyclopedia of Economics. (Ed: D. R. Henderson), pp. 547-548. California: Liberty Fund.
  • Kahneman, D. & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291.
  • Kahneman, D. (2003). A Psychological Perspective on Economics. The American Economic Review, 93(2), 162-168.
  • Kahneman, D. (2019). Hızlı ve Yavaş Düşünme. (Çev: Osman Çetin Deniztekin ve Filiz Nayır Deniztekin). 12. Baskı. İstanbul: Varlık Yayınevi.
  • Kutlar, A. (2017). EViews ve SPSS ile Logistik Regresyon (Logit), Probit ve Tobit Modellerinin Uygulamaları. Ankara: Orion Kitabevi.
  • Pennings, J. M. E. & Smidts, A. (2003). The shape of utility functions and organizational behavior. Management Science, 49(9), 1251-1263.
  • Saruç, N. T. (2015). Vergi Uyumu: Teori ve Uygulama (2. Baskı). Seçkin Kitabevi: Ankara.
  • Schmidt, U. & Traub, S. (2002). An experimental test of loss aversion. The Journal of Risk Uncertainty, 25(3), 233-249.
  • Schmidt, U. & Zank, H. (2005). What is loss aversion?. Journal of Risk and Uncertainty, 30, 157-167.
  • Shiller, R. J. (1998). Human Behavior and the Efficiency of the Financial System. NBER Working Paper, No. 6375.
  • Thaler, R. (2000). From Homo Economicus to Homo Sapiens. Journal of Economic Perspectives,14(1), 133-141.
  • Thaler, R. H., Tversky, A., Kahneman, D. & Schwartz, A. (1997). The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test. The Quarterly Journal of Economics, 112(2), 647-661.
  • Trepel, C., Fox, C. R. & Poldrack, R. A. (2005). Prospect theory on the brain? Toward a Cognitive Neuroscience of Decision Under Risk. Cognitive Brain Research, 23, 34-50.
  • Tunçeli, B. (2021). Binary Logit Model Analiziyle Kredi Kartı Seçimini Etkileyen Faktörlerin Değerlendirilmesi: Osmaniye Uygulaması. (Yayımlanmamış Yüksek Lisans Tezi). Osmaniye Korkut Ata Üniversitesi Sosyal Bilimler Enstitüsü, Osmaniye.
  • Tversky, A. & Kahneman, D. (1991). Loss Aversion in Riskless Choice: A Reference-Dependent Model. Quarterly Journal of Economics, 106(4), 1039-1061.
  • Tversky, A. & Kahneman, D. (1992). Advances in Prospect Theory: Cumulative Representation of Uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323.

Davranışsal Maliye Perspektifinden Kayıptan Kaçınmayı Etkileyen Faktörlerin Analizi

Year 2022, Volume: 8 Issue: 2, 68 - 82, 31.12.2022

Abstract

Kahneman ve Tversky, 1979 yılında yayımlanan çalışmalarında beklenti teorisini ortaya koymuşlardır. Beklenti teorisi, rasyonel karar verme konusuna yeni bir bakış açısı getirmiştir. Rasyonel bireyin aynı miktarda kayıp ile kazanca eşit değer atfetmesi beklenmektedir. Ancak deneysel çalışmaların bulguları bu beklentiyi teyit etmediği gibi tersini göstermektedir. Beklenti teorisi kapsamında ele alınan konulardan birisi olan kayıptan kaçınma, aynı miktardaki kayıp ile kazancı karşılaştıran bireyin bu kayba, kazanca göre daha fazla değer atfetmesidir. Kayıptan kaçınma, ekonomik analizlerde giderek daha fazla ilgi gören önemli bir psikolojik kavramdır. Mükelleflerin vergiye karşı tutum ve davranışlarında psikolojilerinin önemli bir yer edindiğini ortaya koyan deneysel çalışmalar davranışsal maliye alanına yeni bir yön vermiştir. Bu çalışmanın amacı, davranışsal maliye perspektifinden kayıptan kaçınmayı etkileyen faktörlerin tespit edilmesidir. Anket tekniği ile 817 katılımcıdan veri toplanmıştır. Kolayda örnekleme yöntemiyle elde edilen verilerin analizinde Logit regresyon modelinden yararlanılmıştır. Tversky ve Kahneman tarafından 2,25 olarak tahmin edilen kayıptan kaçınma oranı 4,50 olarak tahmin edilmiştir. Bulgularımıza dayalı olarak bireylerin risk düzeyi arttıkça kayıptan kaçınma oranının azaldığı ve yaşadıkları bölgenin nüfusu arttıkça da kayıptan kaçınma oranının arttığı iddia edilebilir.

References

  • Abdellaoui, M., Bleichrodt, H. & Paraschiv, C. (2007). Loss Aversion under Prospect Theory: A Parameter-Free Measurement. Management Science, 50(10), 1659-1674.
  • Akyol, K. (2012). Biyokimya ve Hemogram Laboratuvar Test Sonuçlarının Lojistik Regresyon Yöntemiyle Analizi. (Yayımlanmamış Yüksek Lisans Tezi). Karabük Üniversitesi Fen Bilimleri Enstitüsü, Karabük.
  • Ariely, D., Huber, J. & Wertenbroch, K. (2005). When Do Losses Loom Larger than Gains?. Journal of Marketing Research, 42, 134-138.
  • Balaz, V., Bacova, V., Drobna, E., Dudekova, K. & Adamik, K. (2013). Testing Prospect Theory Parameters. Ekonomický časopis, 61(7), 655-671.
  • Bernasconi, M. & Zanardi, A. (2004). Tax evasion, tax rates and reference dependence. FinanzArchiv, 60(3), 422-445. Bleichrodt, H., Pinto, J. L. & Wakker. P. P. (2001). Using descriptive findings of prospect theory to improve the prescriptive use of expected utility. Management Science, 47(11), 1498-1514.
  • Booij, A. S. & van de Kuilen. G. (2006). A parameter-free analysis of the utility of money for the general population under prospect theory. Working paper, University of Amsterdam, Amsterdam, The Netherlands. 
  • Brenner, L., Rottenstreich, Y., Sood, S., & Bilgin, B. (2007). On The Psychology of Loss Aversion: Possession, Valence, and Reversals of The Endowment Effect. Journal of Consumer Research, 34(3), 369-376.
  • Camerer, C. F. (2005). Three Cheers-Psychological, Theoretical, Empirical-for Loss Aversion. Journal of Marketing Research, 42(2), 129-133.
  • Choo, L., Fonseca, M.A. & Myles, G. D. (2016). Do Students Behave Like Real Taxpayers in the Lab? Evidence from a Real Effort Tax Compliance Experiment. Journal of Economic Behavior & Organization, 124, 102-114.
  • Engström, P., Nordblom, K. & Stefánsson, A. (2022). Loss aversion and indifference to tax rates: Evidence from tax filing data. Journal of Economic Behavior & Organization, 200, 287-311.
  • Engström, P., Nordblom, K., Ohlsson, H. & Persson, A. (2015). Tax Compliance and Loss Aversion. American Economic Journal: Economic Policy, 7(4), 132-164.
  • Fishburn, P. C. & Kochenberger. G. A. (1979). Two-piece von Neumann Morgenstern utility functions. Decision Sciences, 10(4), 503-518.
  • Henderson, D. R. (2005). Daniel Kahneman. In; The Concise Encyclopedia of Economics. (Ed: D. R. Henderson), pp. 547-548. California: Liberty Fund.
  • Kahneman, D. & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-291.
  • Kahneman, D. (2003). A Psychological Perspective on Economics. The American Economic Review, 93(2), 162-168.
  • Kahneman, D. (2019). Hızlı ve Yavaş Düşünme. (Çev: Osman Çetin Deniztekin ve Filiz Nayır Deniztekin). 12. Baskı. İstanbul: Varlık Yayınevi.
  • Kutlar, A. (2017). EViews ve SPSS ile Logistik Regresyon (Logit), Probit ve Tobit Modellerinin Uygulamaları. Ankara: Orion Kitabevi.
  • Pennings, J. M. E. & Smidts, A. (2003). The shape of utility functions and organizational behavior. Management Science, 49(9), 1251-1263.
  • Saruç, N. T. (2015). Vergi Uyumu: Teori ve Uygulama (2. Baskı). Seçkin Kitabevi: Ankara.
  • Schmidt, U. & Traub, S. (2002). An experimental test of loss aversion. The Journal of Risk Uncertainty, 25(3), 233-249.
  • Schmidt, U. & Zank, H. (2005). What is loss aversion?. Journal of Risk and Uncertainty, 30, 157-167.
  • Shiller, R. J. (1998). Human Behavior and the Efficiency of the Financial System. NBER Working Paper, No. 6375.
  • Thaler, R. (2000). From Homo Economicus to Homo Sapiens. Journal of Economic Perspectives,14(1), 133-141.
  • Thaler, R. H., Tversky, A., Kahneman, D. & Schwartz, A. (1997). The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test. The Quarterly Journal of Economics, 112(2), 647-661.
  • Trepel, C., Fox, C. R. & Poldrack, R. A. (2005). Prospect theory on the brain? Toward a Cognitive Neuroscience of Decision Under Risk. Cognitive Brain Research, 23, 34-50.
  • Tunçeli, B. (2021). Binary Logit Model Analiziyle Kredi Kartı Seçimini Etkileyen Faktörlerin Değerlendirilmesi: Osmaniye Uygulaması. (Yayımlanmamış Yüksek Lisans Tezi). Osmaniye Korkut Ata Üniversitesi Sosyal Bilimler Enstitüsü, Osmaniye.
  • Tversky, A. & Kahneman, D. (1991). Loss Aversion in Riskless Choice: A Reference-Dependent Model. Quarterly Journal of Economics, 106(4), 1039-1061.
  • Tversky, A. & Kahneman, D. (1992). Advances in Prospect Theory: Cumulative Representation of Uncertainty. Journal of Risk and Uncertainty, 5(4), 297-323.
There are 28 citations in total.

Details

Primary Language Turkish
Journal Section Research Articles
Authors

Erhan Çelik 0000-0002-9739-9710

İsa Sağbaş 0000-0002-9374-7247

Publication Date December 31, 2022
Published in Issue Year 2022 Volume: 8 Issue: 2

Cite

APA Çelik, E., & Sağbaş, İ. (2022). Davranışsal Maliye Perspektifinden Kayıptan Kaçınmayı Etkileyen Faktörlerin Analizi. Maliye Araştırmaları Dergisi, 8(2), 68-82.

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