Tax Morale and Compliance Behavior: First Evidence on a Causal Link

Martin Halla

No 4918, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Recent literature on tax evasion emphasizes the importance of moral considerations to explain compliance behavior. As a consequence scholars aim to identify factors that shape this so-called tax morale. However, the causal link between tax morale and actual compliance behavior is not established yet. Exploiting exogenous variation in tax morale – given by the inherited part of tax morale of American-born from their ancestors' country of origin – our instrumental variable analysis provides first evidence on a causal effect of tax morale on the size of the underground production.

Keywords: tax evasion; tax compliance; underground production; tax morale (search for similar items in EconPapers)
JEL-codes: A13 C81 H26 O17 Z13 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2010-04
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Published - revised version published in: B.E. Journal of Economic Analysis & Policy, 2012, 12 (1), 1-27

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Related works:
Journal Article: Tax Morale and Compliance Behavior: First Evidence on a Causal Link (2012)
Working Paper: Tax Morale and Compliance Behavior: First Evidence on a Causal Link (2010)
Working Paper: Tax Morale and Compliance Behavior: First Evidence on a Causal Link (2010)
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