Article Review in titled "Make Me Want to Pay: A Three-Way Interaction

between Procedural Justice, Distributive Justice, and Power on Voluntary Tax

Compliance"
 Contents

1. Introduction:...........................................................................................................................................2

2. Summary of the article...........................................................................................................................3

3. Analysis and evaluation.........................................................................................................................4

4. Conclusion.............................................................................................................................................6

Title: "Make Me Want to Pay: A Three-Way Interaction Between Procedural Justice, Distributive Justice,
and Power on Voluntary Tax Compliance"

Authors: Marius van Dijke, Lemessa Bayissa Gobena, Peter Verboon

Publication Information: The article was published in the journal "Frontiers in Psychology" in 2016.
1. Introduction

In the article "Make Me Want to Pay: A Three-Way Interaction Between Procedural Justice, Distributive
Justice, and Power on Voluntary Tax Compliance," authors Marius van Dijke, Lemessa Bayissa Gobena,
and Peter Verboon explore the complex dynamics that influence voluntary tax compliance. The authors
delve into the roles of procedural justice, distributive justice, and power in stimulating individuals'
willingness to comply with tax regulations.

The main research question of the study centers on understanding how distributive justice and procedural
justice interact to predict voluntary tax compliance. The authors aim to investigate whether the interaction
between these two justice dimensions can predict voluntary tax compliance, particularly among
individuals who perceive the tax authority's power as high or low. By exploring this interaction, the
authors seek to shed light on the psychological processes that underlie the relationship between justice
perceptions and compliance behavior.

The authors conducted two field studies, one among Ethiopian taxpayers and another among United
States taxpayers, to examine the predictive power of the Distributive Justice × Procedural Justice
interaction on voluntary tax compliance. These studies contribute to the existing literature on tax
compliance by examining the interaction between distributive and procedural justice, as well as the
moderating role of perceived authority power.

Understanding the factors that drive voluntary tax compliance is crucial for tax authorities and
policymakers in promoting tax compliance behavior. By investigating the interplay between justice
perceptions and authority power, this study offers valuable insights into how tax compliance can be
encouraged and enhanced. The findings of this research have implications for tax authorities in both
developed and developing countries, as they strive to improve compliance rates and foster a sense of
fairness and cooperation among taxpayers.
2. Summary of the Article

The authors conducted two field studies, one in Ethiopia and another in the United States, to examine the
interaction between procedural justice, distributive justice, and power on voluntary tax compliance. They
aimed to determine whether the interaction between distributive and procedural justice predicts voluntary
tax compliance, specifically among individuals who perceive the tax authority's power as high or low.

The findings of both studies supported the hypothesis that the interaction between distributive and
procedural justice significantly predicts voluntary tax compliance. This interaction was stronger when
participants perceived the tax authority's power as high. In other words, when both distributive and
procedural justice were high, individuals were more likely to voluntarily comply with tax regulations,
especially if they perceived the tax authority as powerful.

The methodology used in both studies involved surveying taxpayers to gather data on their perceptions of
distributive justice, procedural justice, perceived authority power, and levels of voluntary and enforced
tax compliance. Participants were asked to rate their perceptions on a scale, and regression analyses were
conducted to analyze the data.

The sample size and characteristics differed between the two studies. The first study was conducted in
Ethiopia and involved 224 taxpayers from various sectors and income levels. The second study was
conducted in the United States and included 381 taxpayers. The sample sizes were relatively small, which
could limit the generalizability of the findings.

One potential limitation of the studies is the reliance on self-reported data, which may be subject to
response biases or social desirability effects. Additionally, the cross-sectional nature of the studies limits
the ability to establish causality. Future research could benefit from longitudinal designs or experimental
manipulations to further explore the relationships between justice perceptions, authority power, and tax
compliance.

In terms of potential biases, it is important to consider cultural and contextual factors that may influence
participants' perceptions and compliance behavior. The studies were conducted in Ethiopia and the United
States, representing different tax environments, and caution should be exercised when generalizing the
findings to other countries or regions.
Overall, the article provides valuable insights into the interplay between procedural justice, distributive
justice, and power on voluntary tax compliance. The findings contribute to the understanding of the
factors that influence compliance behavior and can inform tax authorities and policymakers in developing
strategies to enhance voluntary tax compliance rates.

3. Analysis and Evaluation

Upon analyzing and evaluating the above article, several strengths and weaknesses can be identified,
along with considerations of the validity and reliability of the findings, as well as the theoretical and
practical implications of the research.

Strengths:

The article addresses an important and relevant topic - voluntary tax compliance - which has significant
implications for taxation systems and social welfare.

The study examines the interaction between procedural justice, distributive justice, and power, providing
a comprehensive understanding of the factors that influence compliance behavior.

The use of two field studies in different countries (Ethiopia and the United States) enhances the
generalizability of the findings to diverse tax environments.

The research design incorporates regression analyses, allowing for statistical analysis and testing of
hypotheses.

The study considers the moderating role of perceived authority power, providing valuable insights into
the complex dynamics that influence compliance behavior.

Weaknesses:

The sample sizes in both studies were relatively small, which may limit the generalizability of the
findings. Larger sample sizes would have increased the robustness of the results.

The reliance on self-reported data introduces the potential for response biases and social desirability
effects. Objective measures or behavioral indicators of tax compliance could have strengthened the study.
The cross-sectional nature of the studies restricts the ability to establish causality. Longitudinal or
experimental designs would have provided stronger evidence for the relationships between justice
perceptions, authority power, and tax compliance.

The article does not explicitly address potential confounding variables or alternative explanations for the
observed findings, which could have strengthened the validity of the results.

Validity and Reliability:

The validity of the findings is supported by the use of regression analyses and statistically significant
results. However, the limitations mentioned above, such as small sample sizes and reliance on self-
reported data, may affect the overall validity and reliability of the findings. Future research should
consider addressing these limitations to enhance the validity and reliability of the results.

Theoretical Implications:

The study contributes to the existing literature by examining the interaction between procedural justice,
distributive justice, and power on voluntary tax compliance. The findings support the notion that high
levels of distributive and procedural justice are more likely to lead to voluntary compliance, especially
when the tax authority's power is perceived as high. These findings align with previous research on justice
perceptions and compliance behavior. The study also highlights the importance of considering the role of
authority power in understanding compliance dynamics.

Practical Implications:

The research has practical implications for tax authorities and policymakers. By understanding the factors
that drive voluntary tax compliance, tax authorities can develop strategies to enhance compliance rates.
The findings suggest that improving both distributive and procedural justice can encourage voluntary
compliance. Additionally, tax authorities should focus on building and maintaining their power and
authority to enhance the effectiveness of justice perceptions. These practical implications can contribute
to the development of more effective tax policies and enforcement strategies.

In conclusion, while the above article provides valuable insights into the interaction between procedural
justice, distributive justice, and power on voluntary tax compliance, it is essential to consider the
limitations, such as small sample sizes and reliance on self-reported data. Future research should address
these limitations to strengthen the validity and reliability of the findings. Nonetheless, the study's
theoretical and practical implications contribute to the understanding and promotion of voluntary tax
compliance.
4. Conclusion

The article examines the interaction between procedural justice, distributive justice, and power on
voluntary tax compliance.

The findings support the hypothesis that the interaction between distributive and procedural justice
predicts voluntary tax compliance, especially when the tax authority's power is perceived as high. The
study highlights the importance of considering the role of authority power in understanding compliance
behavior. The research has practical implications for tax authorities and policymakers in promoting
voluntary tax compliance.

Overall, the article makes a valuable contribution to the understanding of factors influencing voluntary
tax compliance. The study addresses an important and relevant topic, and the findings shed light on the
complex dynamics between justice perceptions and compliance behavior. The use of two field studies in
different countries enhances the generalizability of the findings.

However, the article also has some limitations, such as small sample sizes, reliance on self-reported data,
and the cross-sectional nature of the studies. These limitations may impact the generalizability and
validity of the findings. Future research should address these limitations by employing larger sample
sizes, incorporating objective measures of compliance behavior, and utilizing longitudinal or
experimental designs.

The theoretical implications of the research are significant, as it expands our understanding of the
interplay between justice perceptions, authority power, and voluntary tax compliance. The findings
contribute to the existing literature on tax compliance and can inform the development of strategies to
enhance compliance rates.

From a practical standpoint, the research has important implications for tax authorities and policymakers.
Understanding the factors that drive voluntary tax compliance can help in the development of more
effective tax policies and enforcement strategies. The findings suggest that improving both distributive
and procedural justice, while also focusing on maintaining authority power, can encourage voluntary
compliance.

In conclusion, the article provides valuable insights into the interaction between justice perceptions,
authority power, and voluntary tax compliance. Despite some limitations, the research has theoretical and
practical significance. Further research should address the identified limitations and explore additional
factors that may influence compliance behavior. By continuing to deepen our understanding of
compliance dynamics, we can work towards fostering a culture of voluntary tax compliance and
enhancing social welfare.