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

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  • Halla Martin

    ()
    (University of Linz, Austria)

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 Two-Stage Least Square Estimation provides first evidence on a causal effect of tax morale on the size of the underground production.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 12 (2012)
Issue (Month): 1 (April)
Pages: 1-27

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Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:13

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