The Response of Taxpayer Compliance to the Large Shock of Italian Unification

Antonio Acconcia, Marcello D'Amato, Riccardo Martina () and Marisa Ratto ()
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Riccardo Martina: Università di Napoli Federico II and CSEF
Marisa Ratto: Universitè Paris-Dauphine

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: The unification of Italy in 1861 determined that all institutions of the pre-unitary states were replaced by those of the new-born Kingdom of Italy, thus implying common rules for agents formerly obeying to different ones. Moreover, a major tax reform was also set in that determined differential increments of the tax burden across provinces. We investigate the potential implications of these events for tax compliance. By comparing a province-level measure of tax evasion just after the reform with a corresponding recent one, we show a strong process of convergence in compliance. Non-negligible spatial differences in tax evasion, however, still persist nowadays. Further empirical evidence suggests that such differences can be at least in part traced back to the tax reform.

Keywords: tax evasion dynamics; decentralization; local enforcement externality; learning. (search for similar items in EconPapers)
JEL-codes: D62 D81 H26 K41 K42 (search for similar items in EconPapers)
Date: 2019-12-18, Revised 2020-08-07
New Economics Papers: this item is included in nep-his, nep-iue, nep-law, nep-pbe and nep-pub
Note: This paper has circulated previously with the title “Long-run Effects of a Change in Institutions: Evidence on Tax Compliance “
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Related works:
Journal Article: The response of taxpayer compliance to the large shock of Italian unification (2022)
Working Paper: The response of taxpayer compliance to the large shock of Italian unification (2022)
Working Paper: The Response of Taxpayer Compliance to the Large Shock of Italian Unification (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:551

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