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Information about Fewer Audits Reduces Support for Economic Relief Programs

Author

Listed:
  • Haaland, Ingar

    (Dept. of Economics, University of Bergen)

  • Olden, Andreas

    (Dept. of Business and Management Science, Norwegian School of Economics)

Abstract

Using a probability-based sample of the Norwegian population, we test whether an informational treatment about fewer audits by the Norwegian Tax Administration during the peak of the COVID-19 crisis affects support for an economic relief program designed to save jobs and prevent bankruptcies. The information treatment significantly reduces support for the economic relief program. The underlying mechanisms are lower trust in the tax administration and more pessimism about its ability to detect misuse of the program.

Suggested Citation

  • Haaland, Ingar & Olden, Andreas, 2021. "Information about Fewer Audits Reduces Support for Economic Relief Programs," Discussion Papers 2021/2, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2021_002
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    References listed on IDEAS

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    More about this item

    Keywords

    Policy Preferences; Economic Relief Programs; Information; Audit Activities;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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