The Impact of Direct Democracy and Local Autonomy on Tax Morale in Switzerland

Benno Torgler

No 06-2007, Working Papers from Institute of Local Public Finance

Abstract: This paper analyses the impact of direct democracy and local autonomy on tax morale and the size of the shadow economy. We use two different data sets on tax morale at the individual level (World Values Survey and International Social Survey Programme) and the macro data of the size of the shadow economy to systematically analyse the effects of institutions in Switzerland, a country where participation rights and the degree of federalism vary across different cantons. The findings suggest that direct democratic rights and local autonomy, have a significantly positive effect on tax morale and the size of the shadow economy.

Keywords: Tax Morale; Shadow Economy; Tax Compliance; Tax Evasion; Direct Democracy; LocalAutonomy (search for similar items in EconPapers)
JEL-codes: D70 H26 H73 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-12
New Economics Papers: this item is included in nep-cdm, nep-pbe, nep-pol and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:lpf:wpaper:06-2007

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