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Perceptions of institutional quality and justification of tax evasion

Author

Listed:
  • Alvaro Forteza

    (Universidad de la República)

  • Cecilia Noboa

    (Universidad de la República)

Abstract

According to the world values survey, citizens justification of tax evasion varies widely across individuals and countries. We explore in this paper how justification of tax evasion covaries across individuals and countries with measures of government quality and the survey respondents own perceptions of the institutional quality. We study three proxies for individuals assessment of institutional quality, namely confidence in government, in civil service and in justice. We find only weak evidence that better assessments of the quality of government institutions are associated with less justification of tax evasion.

Suggested Citation

  • Alvaro Forteza & Cecilia Noboa, 2019. "Perceptions of institutional quality and justification of tax evasion," Constitutional Political Economy, Springer, vol. 30(4), pages 367-382, December.
    • Handle: RePEc:kap:copoec:v:30:y:2019:i:4:d:10.1007_s10602-019-09287-1
    DOI: 10.1007/s10602-019-09287-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Development; Institutional quality; Tax morale; Tolerance of tax evasion;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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