Tax Compliance Under Different Institutional Settings in the EU: An Experimental Analysis

Stefania Ottone, Ferruccio Ponzano and Giulia Andrighetto

No 307, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: In this paper we study how people from different European countries would react, in terms of tax compliance, to institutional changes. We choose an experimental setting and we focus on two features of the tax system – efficiency and tax rate. We develop our analysis in three countries characterized by different systems: Italy, Sweden, UK. The main finding is that participants from different countries react with the same intensity to efficiency changes but not to increases in the tax rate. In all countries tax compliance decreases as tax rate increases, but the reaction is stronger in Italy and softer in UK. Policy implications – mostly focused on fiscal harmonization - follow.

Keywords: tax compliance; fiscal harmonization; cross-country comparison; efficiency; tax rate (search for similar items in EconPapers)
JEL-codes: C9 D31 H26 (search for similar items in EconPapers)
Pages: 27
Date: 2015-08, Revised 2015-08
New Economics Papers: this item is included in nep-eur, nep-exp, nep-ger, nep-iue, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:307

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