Fiscal Illusion around the World
AbstractThis article estimates the magnitude of fiscal illusion around the world and evaluates whether relationships exist between fiscal illusion and a set of potential observed variables. The index of fiscal illusion is derived for approximately fifty countries over the period 2000â€“08. Using MIMIC models, the authors conclude that the structure of employment (self-employment as a percentage of total employment) and nominal marginal tax rates, by increasing the visibility of the tax burden, may constitute the greatest incentives for policy makers to distort taxpayers' perceptions. Less relevant are the determinants of fiscal illusion related to the information acquisition and processing capabilities of the taxpayer (i.e., freedom of the press and tertiary education).
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Bibliographic InfoArticle provided by in its journal Public Finance Review.
Volume (Year): 40 (2012)
Issue (Month): 2 (March)
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- Andreas Buehn & Roberto Dell'Anno & Friedrich Schneider, 2013.
"Fiscal illusion and the shadow economy: Two sides of the same coin?,"
Economics working papers
2013-21, Department of Economics, Johannes Kepler University Linz, Austria.
- Buehn, Andreas & Dell'Anno, Roberto & Schneider, Friedrich, 2012. "Fiscal illusion and the shadow economy: Two sides of the same coin?," MPRA Paper 42531, University Library of Munich, Germany.
- Dell'Anno, Roberto & Dollery, Brian, 2012. "Comparative fiscal illusion: A fiscal illusion index for the European Union," MPRA Paper 42537, University Library of Munich, Germany.
- Roberto Dell’Anno & Jorge Martinez-Vazquez, 2013. "A Behavioral Local Public Finance Perspective on the Renter’s Illusion Hypothesis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1303, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- H. Spencer Banzhaf & Wallace E. Oates, 2012. "On Fiscal Illusion and Ricardian Equivalence in Local Public Finance," NBER Working Papers 18040, National Bureau of Economic Research, Inc.
- Facchini, Francois, 2014. "The determinants of public spending: a survey in a methodological perspective," MPRA Paper 53006, University Library of Munich, Germany.
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