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Tax Morale

Author

Listed:
  • Luttmer, Erzo F.P.

    (Dartmouth College)

  • Singhal, Monica

    (Harvard Kennedy School)

Abstract

Standard economic models of tax compliance have focused on enforcement-driven compliance. Notably, tax administrators also tend to place a great deal of emphasis on the importance of improving "tax morale" by encouraging voluntary compliance, creating a culture of compliance, and changing social norms. Tax morale does indeed appear to be an important component of compliance decisions, and there is strong evidence that tax morale operates through a variety of underlying channels. There is less evidence - to date - that indicates we know how to leverage these channels to improve compliance and revenue collection in a consistently successful way.

Suggested Citation

  • Luttmer, Erzo F.P. & Singhal, Monica, 2014. "Tax Morale," IZA Discussion Papers 8448, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8448
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    References listed on IDEAS

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    More about this item

    Keywords

    tax compliance; intrinsic motivation; reciprocity; social effects; culture;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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