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Is there a cultural component in tax morale? Evidence from immigrants in Europe

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  • Kountouris, Yiannis
  • Remoundou, Kyriaki

Abstract

In this paper we examine the existence of a cultural component in individual tax morale. To identify the effect of culture we use immigrant data drawn from the European Social Survey. We find that culture is a significant determinant of tax morale: the level of tax morale in the country of immigrant origin influences individual tax morale in the destination country. The result is robust to the inclusion of a wide set of individual and aggregate controls and persists across different population segments.

Suggested Citation

  • Kountouris, Yiannis & Remoundou, Kyriaki, 2013. "Is there a cultural component in tax morale? Evidence from immigrants in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 104-119.
    • Handle: RePEc:eee:jeborg:v:96:y:2013:i:c:p:104-119
    DOI: 10.1016/j.jebo.2013.09.010
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    2. Erzo F. P. Luttmer & Monica Singhal, 2014. "Tax Morale," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 149-168, Fall.
    3. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    4. Mbara, Gilbert & Tyrowicz, Joanna & Kokoszczynski, Ryszard, 2020. "Striking a balance: Optimal tax policy with labor market duality," Journal of Macroeconomics, Elsevier, vol. 66(C).
    5. Pascual-Ezama, David & Fosgaard, Toke R. & Cardenas, Juan Camilo & Kujal, Praveen & Veszteg, Robert & Gil-Gómez de Liaño, Beatriz & Gunia, Brian & Weichselbaumer, Doris & Hilken, Katharina & Antinyan,, 2015. "Context-dependent cheating: Experimental evidence from 16 countries," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 379-386.
    6. Michael Haliassos & Thomas Jansson & Yigitcan Karabulut, 2017. "Incompatible European Partners? Cultural Predispositions and Household Financial Behavior," Management Science, INFORMS, vol. 63(11), pages 3780-3808, November.
    7. Fabio Lamantia & Mario Pezzino & Fabio Tramontana, 2017. "Tax evasion, intrinsic motivation, and the evolutionary effects of tax reforms," The School of Economics Discussion Paper Series 1707, Economics, The University of Manchester.
    8. Arbel, Yuval & Bar-El, Ronen & Siniver, Erez & Tobol, Yossef, 2014. "Roll a die and tell a lie – What affects honesty?," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 153-172.
    9. Gonnot, Jérôme, 2020. "The Evolution of First-Generation Immigrants' Political Preferences in Western Europe," TSE Working Papers 20-1145, Toulouse School of Economics (TSE).
    10. 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.
    11. Yiannis Kountouris & Kyriaki Remoundou, 2016. "Cultural Influence on Preferences and Attitudes for Environmental Quality," Kyklos, Wiley Blackwell, vol. 69(2), pages 369-397, May.

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