Behavioral Economics Approaches to Maximizing Tax Compliance in the Republic of Moldova

Abstract

This article examines the relevance of behavioral economics for tax compliance policy in the Republic of Moldova. Starting from the critique of the homo economicus model, the paper analyzes the role of heuristics, loss a version, present bias, framing effects, mental accounting, and status quo preferences in taxpayers’ decisions. The study highlights that fiscal compliance is shaped not only by sanctions and audit probability, but also by the simplicity of procedures, the salience of tax obligations, the architecture of choice, and the narratives through which taxation is publicly understood. By reorganizing the main ideas from behavioral economics and connecting them to fiscal policy, the article argues that Moldova can increase voluntary compliance through clearer communication, simplified procedures, with holding mechanisms, behavioral reminders, and a more coherent design of tax obligations. The conclusion is that behavioral approaches do not replace classical tax administration instruments, but significantly strengthen them. CZU: 336.225:336.225.673(478); JEL: H21, H26, D91, K34