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Life satisfaction and tax preferences in transition economies

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  • Andriani, Luca
  • Ashyrov, Gaygysyz

Abstract

In this work, we adopt the recent perspective that higher quality of life enhances individuals' civic engagement, making them more committed to societal well-being and more willing to contribute to improving the social and institutional environment. Specifically, focusing on transition economies, we examine the role of life satisfaction in shaping individuals' willingness to pay higher taxes to support public goods such as education, healthcare, aid for those in need, and efforts to combat climate change. Using data from the Life in Transition Survey, we find that individuals with greater life satisfaction are more inclined to contribute towards a range of public and common goods. These findings are robust across various sensitivity analyses and sample specifications. Our results underscore the significance of life satisfaction in fostering civic engagement and enhancing contributions to societal well-being

Suggested Citation

  • Andriani, Luca & Ashyrov, Gaygysyz, 2025. "Life satisfaction and tax preferences in transition economies," Economic Systems, Elsevier, vol. 49(3).
    • Handle: RePEc:eee:ecosys:v:49:y:2025:i:3:s0939362524001092
    DOI: 10.1016/j.ecosys.2024.101287
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    Keywords

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    JEL classification:

    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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