How mobile text reminders earned Madagascar a 32,900% ROI in collecting unpaid taxes

Curated on Posted on by Stefaan Verhulst

Paper by Tiago Peixoto et al : “Benjamin Franklin famously once said that “nothing can be said to be certain, except death and taxes.” In developing countries, however, tax revenues are anything but certain. Madagascar is a prime example, with tax collection as a share of GDP at just under 11 percent. This is low even compared with countries of similar levels of economic development, and well below what the government could reasonably collect to fund much-needed public services, such as education, health and infrastructure. 

Poor compliance by citizens who owe taxes remains a major reason for Madagascar’s low tax collection. Madagascar’s government has therefore made increasing tax revenue collection a high priority in its strategy for promoting sustainable economic growth and addressing poverty.

Reforming a tax system can take decades. But small measures, implemented with the help of technology, can help tax authorities improve compliance.  Our team at the World Bank jointly conducted a field experiment with the Madagascar’s Directorate General for Taxation, to test whether simple text message reminders via mobile phones could increase compliance among late-tax filers.

We took a group of 15,885 late-income-tax filers and randomly assigned some of them to receive a series of messages reminding them to file a tax declaration and emphasizing various reasons to pay taxes. Late tax filers were told that they could avoid a late penalty by meeting an extended deadline and were given the link to the tax filing website. 

The results of the experiment were significant. In the control group, only 7.2% of late filers filed a tax return by the extended deadline cited in the SMS messages. This increased to 9.8% in the treatment groups who received SMS reminders. This might not sound like much, but for every dollar spent sending text messages, the tax authority collected an additional 329 dollars in revenues, making the intervention highly cost-effective.

In fact, the return on this particular investment was 32,900 percent! Although this increase in revenue is relatively small in absolute terms—around $375,000—it could be automatically integrated into the tax system. It also suggests that messaging may hold a lot of promise for cost-effectively increasing tax receipts even in developing country contexts….(More)”.

What Restaurant Reviews Reveal About Cities

Curated on Posted on by Stefaan Verhulst

Linda Poon at CityLab: “Online review sites can tell you a lot about a city’s restaurant scene, and they can reveal a lot about the city itself, too.

Researchers at MIT recently found that information about restaurants gathered from popular review sites can be used to uncover a number of socioeconomic factors of a neighborhood, including its employment rates and demographic profiles of the people who live, work, and travel there.

A report published last week in the Proceedings of the National Academy of Sciences explains how the researchers used information found on Dianping—a Yelp-like site in China—to find information that might usually be gleaned from an official government census. The model could prove especially useful for gathering information about cities that don’t have that kind of reliable or up-to-date government data, especially in developing countries with limited resources to conduct regular surveys….

Zheng and her colleagues tested out their machine-learning model using restaurant data from nine Chinese cities of various sizes—from crowded ones like Beijing, with a population of more than 10 million, to smaller ones like Baoding, a city of fewer than 3 million people.

They pulled data from 630,000 restaurants listed on Dianping, including each business’s location, menu prices, opening day, and customer ratings. Then they ran it through a machine-learning model with official census data and with anonymous location and spending data gathered from cell phones and bank cards. By comparing the information, they were able to determine where the restaurant data reflected the other data they had about neighborhoods’ characteristics.

They found that the local restaurant scene can predict, with 95 percent accuracy, variations in a neighborhood’s daytime and nighttime populations, which are measured using mobile phone data. They can also predict, with 90 and 93 percent accuracy, respectively, the number of businesses and the volume of consumer consumption. The type of cuisines offered and kind of eateries available (coffeeshop vs. traditional teahouses, for example), can also predict the proportion of immigrants or age and income breakdown of residents. The predictions are more accurate for neighborhoods near urban centers as opposed to those near suburbs, and for smaller cities, where neighborhoods don’t vary as widely as those in bigger metropolises….(More)”.

Applying design science in public policy and administration research

Curated on Posted on by Stefaan Verhulst

Paper by Sjoerd Romme and Albert Meijer: “There is increasing debate about the role that public policy research can play in identifying solutions to complex policy challenges. Most studies focus on describing and explaining how governance systems operate. However, some scholars argue that because current institutions are often not up to the task, researchers need to rethink this ‘bystander’ approach and engage in experimentation and interventions that can help to change and improve governance systems.

This paper contributes to this discourse by developing a design science framework that integrates retrospective research (scientific validation) and prospective research (creative design). It illustrates the merits and challenges of doing this through two case studies in the Netherlands and concludes that a design science framework provides a way of integrating traditional validation-oriented research with intervention-oriented design approaches. We argue that working at the interface between them will create new opportunities for these complementary modes of public policy research to achieve impact….(More)”

The Power of Global Performance Indicators

Curated on Posted on by Stefaan Verhulst

Introduction to Special Issue of International Organization by
Judith G. Kelley and Beth A. Simmons: “In recent decades, IGOs, NGOs, private firms and even states have begun to regularly package and distribute information on the relative performance of states. From the World Bank’s Ease of Doing Business Index to the Financial Action Task Force blacklist, global performance indicators (GPIs) are increasingly deployed to influence governance globally. We argue that GPIs derive influence from their ability to frame issues, extend the authority of the creator, and — most importantly — to invoke recurrent comparison that stimulates governments’ concerns for their own and their country’s reputation. Their public and ongoing ratings and rankings of states are particularly adept at capturing attention not only at elite policy levels but also among other domestic and transnational actors. GPIs thus raise new questions for research on politics and governance globally. What are the social and political effects of this form of information on discourse, policies and behavior? What types of actors can effectively wield GPIs and on what types of issues? In this symposium introduction, we define GPIs, describe their rise, and theorize and discuss these questions in light of the findings of the symposium contributions…(More)”.

Studying Crime and Place with the Crime Open Database

Curated on Posted on by Stefaan Verhulst

M. P. J. Ashby in Research Data Journal for the Humanities and Social Sciences: “The study of spatial and temporal crime patterns is important for both academic understanding of crime-generating processes and for policies aimed at reducing crime. However, studying crime and place is often made more difficult by restrictions on access to appropriate crime data. This means understanding of many spatio-temporal crime patterns are limited to data from a single geographic setting, and there are few attempts at replication. This article introduces the Crime Open Database (code), a database of 16 million offenses from 10 of the largest United States cities over 11 years and more than 60 offense types. Open crime data were obtained from each city, having been published in multiple incompatible formats. The data were processed to harmonize geographic co-ordinates, dates and times, offense categories and location types, as well as adding census and other geographic identifiers. The resulting database allows the wider study of spatio-temporal patterns of crime across multiple US cities, allowing greater understanding of variations in the relationships between crime and place across different settings, as well as facilitating replication of research….(More)”.

Governing Smart Data in the Public Interest: Lessons from Ontario’s Smart Metering Entity

Curated on Posted on by Stefaan Verhulst

Paper by Teresa Scassa and Merlynda Vilain: “The collection of vast quantities of personal data from embedded sensors is increasingly an aspect of urban life. This type of data collection is a feature of so-called smart cities, and it raises important questions about data governance. This is particularly the case where the data may be made available for reuse by others and for a variety of purposes.

This paper focuses on the governance of data captured through “smart” technologies and uses Ontario’s smart metering program as a case study. Ontario rolled out mandatory smart metering for electrical consumption in the early 2000s largely to meet energy conservation goals. In doing so, it designed a centralized data governance system overseen by the Smart Metering Entity to manage smart meter data and to protect consumer privacy. As interest in access to the data grew among third parties, and as new potential applications for the data emerged, the regulator sought to develop a model for data sharing that would protect privacy in relation to these new uses and that would avoid uses that might harm the public interest…(More)”.

The Governance Turn in Information Privacy Law

Curated on Posted on by Stefaan Verhulst

Paper by Jane K. Winn: “The governance turn in information privacy law is a turn away from a model of bureaucratic administration of individual control rights and toward a model of collaborative governance of shared interests in information. Collaborative information governance has roots in the American pragmatic philosophy of Peirce, James and Dewey and the 1973 HEW Report that rejected unilateral individual control rights, recognizing instead the essential characteristic of mutuality of shared purposes that are mediated through information governance. America’s current information privacy law regime consists of market mechanisms supplemented by sector-specific, risk-based laws designed to foster a culture of compliance. Prior to the GDPR, data protection law compliance in Europe was more honored in the breach than the observance, so the EU’s strengthening of its bureaucratic individual control rights model reveals more about the EU’s democratic deficit than a commitment to compliance.

The conventional “Europe good, America bad” wisdom about information privacy law obscures a paradox: if the focus shifts from what “law in the books” says to what “law in action” does, it quickly becomes apparent that American businesses lead the world with their efforts to comply with information privacy law, so “America good, Europe bad” might be more accurate. Creating a federal legislative interface through which regulators and voluntary, consensus standards organizations can collaborate could break the current political stalemate triggered by California’s 2018 EU-style information privacy law. Such a pragmatic approach to information governance can safeguard Americans’ continued access to the benefits of innovation and economic growth as well as providing risk-based protection from harm. America can preserve its leadership of the global information economy by rejecting EU-style information privacy laws and building instead a flexible, dynamic framework of information governance capable of addressing both privacy and disclosure issues simultaneously….(More)”.

The Remarkable Unresponsiveness of College Students to Nudging And What We Can Learn from It

Curated on Posted on by Stefaan Verhulst

Paper by Philip Oreopoulos and Uros Petronijevic: “We present results from a five-year effort to design promising online and text-message interventions to improve college achievement through several distinct channels. From a sample of nearly 25,000 students across three different campuses, we find some improvement from coaching-based interventions on mental health and study time, but none of the interventions we evaluate significantly influences academic outcomes (even for those students more at risk of dropping out). We interpret the results with our survey data and a model of student effort. Students study about five to eight hours fewer each week than they plan to, though our interventions do not alter this tendency. The coaching interventions make some students realize that more effort is needed to attain good grades but, rather than working harder, they settle by adjusting grade expectations downwards. Our study time impacts are not large enough for translating into significant academic benefits. More comprehensive but expensive programs appear more promising for helping college students outside the classroom….(More)”

Blockchain and Public Record Keeping: Of Temples, Prisons, and the (Re)Configuration of Power

Curated on Posted on by Stefaan Verhulst

Paper by Victoria L. Lemieux: “This paper discusses blockchain technology as a public record keeping system, linking record keeping to power of authority, veneration (temples), and control (prisons) that configure and reconfigure social, economic, and political relations. It discusses blockchain technology as being constructed as a mechanism to counter institutions and social actors that currently hold power, but whom are nowadays often viewed with mistrust. It explores claims for blockchain as a record keeping force of resistance to those powers using an archival theoretic analytic lens. The paper evaluates claims that blockchain technology can support the creation and preservation of trustworthy records able to serve as alternative sources of evidence of rights, entitlements and actions with the potential to unseat the institutional power of the nation-state….(More)”.

In the Mood for Democracy? Democratic Support as Thermostatic Opinion

Curated on Posted on by Stefaan Verhulst

Paper by Christopher Claassen: “Public support has long been thought crucial for the survival of democracy. Existing research has argued that democracy moreover appears to create its own demand: the presence of a democratic system coupled with the passage of time produces a public who supports democracy. Using new panel measures of democratic mood varying over 135 countries and up to 30 years, this paper finds little evidence for such a positive feedback effect of democracy on support. Instead, it demonstrates a thermostatic effect: increases in democracy depress democratic mood, while decreases cheer it. Moreover, it is increases in the liberal, counter-majoritarian aspects of democracy, not the majoritarian, electoral aspects that provoke this backlash from citizens. These novel results challenge existing research on support for democracy, but also reconcile this research with the literature on macro-opinion….(More)”.