Plausibly Exogenous [907] - 1099-K (07/24/2022)
LHS Variable
Behavioral responses
RHS Variable
Form 1099-K, a third-party income reporting law that requires credit and debit card companies to report to the Internal Revenue Service gross of payment transactions that businesses receive through their payment systems
Source of Exogenous Variation
Natural experiment in which some cities in the U.S. passed ordinances requiring taxicabs to install credit card readers in their vehicles, while other cities did not pass such ordinances, creating plausibly exogenous variation in the share of receipts reported on Form 1099-K
- Adhikari et al. (2022), “Using a natural experiment in the taxicab industry to analyze the effects of third-party income reporting”