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Tax morale and fairness in conflict an experiment
Max Planck Institute for Research on Collective Goods, Bonn, Germany.
Department of Economics and Management, University of Trento, Trento, Italy; School of Business and Management, LUT University, Lappeenranta, Finland.
School of Business and Management, LUT University, Lappeenranta, Finland.ORCID iD: 0000-0002-7402-0421
2020 (English)In: Journal of Economic Psychology, ISSN 0167-4870, E-ISSN 1872-7719, Vol. 81, article id 102314Article in journal (Refereed) Published
Abstract [en]

Most people pay their taxes most of the time, even if the expected disutility from enforcement is too low to deter tax evasion. One potential reason is tax morale and, more specifically, rule following. In a lab experiment, we show that the willingness to pay taxes just because participants are told they are supposed to pay is indeed pronounced. Yet compliance is reduced if participants learn that income is heterogeneous. The effect is driven by participants with the lowest income. The reduction obtains irrespective of the tax regime. If the tax is proportional to income, or progressive, participants become more skeptical about the willingness of participants with high income to comply.

Place, publisher, year, edition, pages
Elsevier, 2020. Vol. 81, article id 102314
Keywords [en]
2260, 2960, 3660, Beliefs, Fairness, Heterogeneity, Path model, Rule following, Tax evasion, Tax morale
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-62570DOI: 10.1016/j.joep.2020.102314ISI: 000590175000008Scopus ID: 2-s2.0-85090833903OAI: oai:DiVA.org:hj-62570DiVA, id: diva2:1801990
Available from: 2023-10-03 Created: 2023-10-03 Last updated: 2023-10-03Bibliographically approved

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Morreale, Azzurra

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