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Endogenous Norm Formation Over the Life Cycle – The Case of Tax Morale

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Author Info

  • Katarina Nordblom

    ()
    (UCFS, Uppsala University, Box 513, SE-751 20 Uppsala, Sweden and Department of Economics, University of Gothenburg, Sweden)

  • Jovan Žamac

    ()
    (UCFS, Uppsala University, Box 513, SE-751 20 Uppsala, Sweden and Institute for Future Studies, Stockholm, Sweden)

Abstract

Elderly are generally observed to have stronger tax morale than young people. We explain why this may be an age rather than a cohort effect. We apply mechanisms from social psychology to explain how personal norms may evolve over the life cycle due to their past behavior (e.g., cognitive dissonance) and/or by the attitudes of peers (normative conformity). We can explain the difference between young and old people’s moral values as an age effect with heterogeneous norm-updating where those who identify with their network conform with it, while others are influenced by their own past behavior.

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Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 42 (2012)
Issue (Month): 2 (September)
Pages: 153-170

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Handle: RePEc:eap:articl:v:42:y:2012:i:2:p:153-170

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Related research

Keywords: Social norms; Endogenous norms; Tax evasion; Cognitive dissonance; Self-signaling; Normative conformity.;

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References

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  1. Torgler, Benno & Schneider, Friedrich, 2006. "What Shapes Attitudes Toward Paying Taxes? Evidence from Multicultural European Countries," IZA Discussion Papers 2117, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Hokamp, Sascha, 2014. "Dynamics of tax evasion with back auditing, social norm updating, and public goods provision – An agent-based simulation," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 187-199.
  2. Pickhardt, Michael & Seibold, Goetz, 2011. "Income tax evasion dynamics: Evidence from an agent-based econophysics model," CAWM Discussion Papers 53, Center of Applied Economic Research Münster (CAWM), University of Münster.
  3. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.

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