Effects of Tax Morale on Tax Compliance: Experimental and Survey Evidence
AbstractThere is considerable evidence that enforcement efforts can increase tax compliance. However, there must be other forces at work because observed compliance levels cannot be fully explained by the level of enforcement actions typical of most tax authorities. Further, there are observed differences, not related to enforcement effort, in the levels of compliance across countries and cultures. To fully understand differences in compliance behavior across cultures one needs to understand differences in tax administration and citizen attitudes toward governments. The working hypothesis is that cross-cultural differences in behavior have foundations in these institutions. Tax compliance is a complex behavioral issue and its investigation requires the use of a variety of methods and data sources. Results from laboratory experiments conducted in different countries demonstrate that observed differences in tax compliance levels can be explained by differences in the fairness of tax administration, in the perceived fiscal exchange, and in the overall attitude towards the respective governments. These experimental results are shown to be robust by replicating them for the same countries using survey response measures of “tax morale.”
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0516.
Length: 29 pages
Date of creation: 01 Jul 2005
Date of revision:
Contact details of provider:
Web page: http://aysps.gsu.edu/isp/index.html
Behavior; tax morale; tax compliance;
Other versions of this item:
- Cummings, Ronald G. & Martinez-Vazquez, Jorge & McKee, Michael & Torgler, Benno, 2006. "Effects of Tax Morale on Tax Compliance: Experimental and Survey Evidence," Berkeley Olin Program in Law & Economics, Working Paper Series qt8sh2w9fp, Berkeley Olin Program in Law & Economics.
- Ronald G. Cummings & Jorge Martinez-Vazquez & Michael McKee & Benno Torgler, 2005. "Effects of Tax Morale on Tax Compliance: Experimental and Survey Evidence," CREMA Working Paper Series 2005-29, Center for Research in Economics, Management and the Arts (CREMA).
- Ronald G. Cummings & Jorge Martinez-Vazquez & Michael McKee & Benno Torgler, 2007. "Effects of Tax Morale on Tax Compliance: Experimental and Survey Evidence," NCER Working Paper Series 12, National Centre for Econometric Research.
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
This paper has been announced in the following NEP Reports:
- NEP-ACC-2005-08-13 (Accounting & Auditing)
- NEP-ALL-2005-08-13 (All new papers)
- NEP-CBE-2005-08-13 (Cognitive & Behavioural Economics)
- NEP-EXP-2005-08-13 (Experimental Economics)
- NEP-PUB-2005-08-13 (Public Finance)
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