EconPapers    
Economics at your fingertips  
 

State Capacity and Tolerance towards Tax Evasion: First Evidence from Romania

Călin Vâlsan (), Elena Druica and Rodica Ianole-Călin ()
Additional contact information
Călin Vâlsan: Williams School of Business, Bishops’ University, Sherbrooke, QC J1M1Z7, Canada
Rodica Ianole-Călin: Faculty of Business and Administration, University of Bucharest, 030018 Bucharest, Romania

Administrative Sciences, 2020, vol. 10, issue 2, 1-18

Abstract: We investigate the level of tolerance towards tax non-compliance and the informal economy in Romania, using a sample of 250 respondents. This variable is determined by a complex set of latent variables that include, but is not limited to, state capacity, social and business norms, the perception of non-compliance, and the perception of distributive justice. We find that our respondents are intolerant towards tax evasion and the informal economy, but the level of intolerance is relatively mild. Using a partial least squares—path modeling approach, we also find that a weak state capacity and the perception of lack of distributive justice increases the level of tolerance. The perception of tax evasion stemming from media reports, and the respondents’ own self-enhancement bias, combine to push the level of tolerance lower.

Keywords: tax compliance; informal economy; state capacity; partial least square model (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2076-3387/10/2/33/pdf (application/pdf)
https://www.mdpi.com/2076-3387/10/2/33/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jadmsc:v:10:y:2020:i:2:p:33-:d:370826

Access Statistics for this article

Administrative Sciences is currently edited by Dr. Robert G. DelCampo

More articles in Administrative Sciences from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2021-09-22
Handle: RePEc:gam:jadmsc:v:10:y:2020:i:2:p:33-:d:370826