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Has Covid Vaccination Success Increased the Marginal Willingness to Pay Taxes?

Author

Listed:
  • José María Durán-Cabré

    (Universitat de Barcelona & IEB)

  • Alejandro Esteller-Moré

    (Universitat de Barcelona & IEB)

  • Leonzio Rizzo

    (Università degli Studi di Ferrara & IEB)

  • Riccardo Secomandi

    (University of Ferrara)

Abstract

The Covid-19 vaccination campaign can be regarded as a public-sector success story. Given the shock caused by the pandemic, the visible and successful response of the public authorities regarding vaccination might have elicited an increase in the public’s trust. We test whether the vaccination process has increased the marginal willingness to pay taxes (MWTP). Taking advantage of the different paths of vaccination in Spain, we pursue a difference-in-difference empirical strategy, complemented by an event study, to infer causality running from vaccination to MWTP. We find an increase in MWTP caused by the good governance related to vaccination.

Suggested Citation

  • José María Durán-Cabré & Alejandro Esteller-Moré & Leonzio Rizzo & Riccardo Secomandi, 2023. "Has Covid Vaccination Success Increased the Marginal Willingness to Pay Taxes?," Working Papers 2023/08, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2023-08
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    File URL: https://ieb.ub.edu/ca/publication/2023-08-has-covid-vaccination-success-increased-our-marginal-willingness-to-pay-taxes/
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    More about this item

    Keywords

    Survey data; marginal willingness to pay; DiD; event study; Covid-19;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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