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Trust in Government and Willingness to Pay Taxes in Transition Countries

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  • John E. Anderson

    () (University of Nebraska-Lincoln)

Abstract

Abstract This paper examines citizen trust in government institutions and the effect of trust on willingness to pay taxes for public goods/services in transition countries. Empirical models are estimated to test whether trust in government has a positive effect on WTP for improved public education, improved public health system, combating climate change, and helping the needy. Data are from the European Bank for Reconstruction and Development’s Life in Transition Survey, 2010. Results indicate that trust in government generally has a significant positive effect on WTP for public goods, although differences are found among government institutions and across public goods.

Suggested Citation

  • John E. Anderson, 2017. "Trust in Government and Willingness to Pay Taxes in Transition Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 1-22, March.
  • Handle: RePEc:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0017-x
    DOI: 10.1057/s41294-016-0017-x
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    References listed on IDEAS

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    More about this item

    Keywords

    trust in government; transition economies; willingness to pay taxes; taxation; redistribution;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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