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Tax Morale and Perceived Intergenerational Mobility: a Machine Learning Predictive Approach

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  • Caferra, Rocco
  • Morone, Andrea

Abstract

The purpose of this paper is to investigate the linkage between the perceived intergenerational mobility and the preferences for tax payment. Unfortunately, we do not have a unique dataset, however missing data might be predicted by employing di�erent methods. We compare the efficiency of k-nearest-neighbors (kNN), Random Forest (RF) and Tobit-2-sample-2-Stage (T2S2S) techniques in predicting the perceived inter- generational mobility, hence we exploit the predicted values to estimate the relation with tax morale. Results provide evidence of a strong negative relation between perceived mobility and tax cheating, suggesting that fairness in tax payment has also to be seen on the light of the perceived efficiency of the welfare state in providing more opportunities across generations.

Suggested Citation

  • Caferra, Rocco & Morone, Andrea, 2019. "Tax Morale and Perceived Intergenerational Mobility: a Machine Learning Predictive Approach," MPRA Paper 93171, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93171
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    References listed on IDEAS

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    6. Belmonte, Alessandro & Dell'Anno, Roberto & Teobaldelli, Désirée, 2018. "Tax morale, aversion to ethnic diversity, and decentralization," European Journal of Political Economy, Elsevier, vol. 55(C), pages 204-223.
    7. Sendhil Mullainathan & Jann Spiess, 2017. "Machine Learning: An Applied Econometric Approach," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 87-106, Spring.
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    More about this item

    Keywords

    intergenerational mobility; tax morale; missing data;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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