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Taxation and Conditional Taxation

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  • Bruno S. Frey

    ()
    (Institute for Empirical Economic Research of the University of Zurich)

  • Benno Torgler

    ()
    (Yale Center for International and Area Studies)

Abstract

Why so many people pay their taxes, although fines and audit probability are low, has become a central question in the tax compliance literature. Concepts of Homo Economicus, endowed with a more refined motivation structure, help to shed light on the tax compliance puzzle. This paper provides empirical evidence for the relevance of conditional cooperation, using survey data from 30 European countries. The findings suggest that a higher perceived tax evasion leads to a lower tax morale, also when controlling for additional factors in a multivariate analysis.

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Bibliographic Info

Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2004/7.

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Length: 34 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:ieb:wpaper:154806art152

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Related research

Keywords: Pro-social behavior; Tax compliance; Tax evation; Tax morale;

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References

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