Skipping Out On The Check: Institutional Quality, Tax Evasion, And Individual Preferences For Social Policy
Israel Marques ()
Additional contact information
Israel Marques: National Research University Higher School of Economics
HSE Working papers from National Research University Higher School of Economics
Who supports social policy in settings where institutions are weak? Existing work on social policy preferences focuses on the developed world, where governments can credibly commit to policy, tax evasion is constrained, and governments are accountable. In this paper, I relax these assumptions. I argue that weak accountability under poor institutions allow government officials to expend less effort to collect social policy contributions, decreasing expected revenues.For most, this is akin to a dead-weight cost that saps support for redistribution. For those with a comparative advantage in tax evasion, however, this allows for free-riding on the contributions of others and decreases the costs of social policy. As institutional quality declines and tax evasion becomes easier, individuals with a comparative advantage in tax evasion should therefore be more likely to support redistribution. I test this argument using public opinion data from a survey of 28,000 individuals in 28 post-communist countries.
Keywords: Shadow Economy; Preferences for Redistribution; Public Opinion; Tax Evasion; Comparative Political Economy (search for similar items in EconPapers)
JEL-codes: H53 O15 (search for similar items in EconPapers)
Pages: 61 pages
New Economics Papers: this item is included in nep-his, nep-iue and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in WP BRP Series: Political Science / PS, January 2022, pages 1-61
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:85/ps/2022
Access Statistics for this paper
More papers in HSE Working papers from National Research University Higher School of Economics
Bibliographic data for series maintained by Shamil Abdulaev () and Shamil Abdulaev ().