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Cautionary Tales: Celebrities, the News Media, and Participation in Tax Amnesties

Author

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  • Marcel Garz
  • Verena Pagels

Abstract

This study uses an original state-level data set to investigate whether press coverage on trials for tax evasion by celebrities affects the likelihood that other tax payers participate in Germany’s tax amnesty program. To identify the causal effect, we use exogenous variation in the reporting, resulting from disasters and terrorist attacks that coincide with the celebrity trials. Instrumental variable estimates suggest that an increase in news coverage by the amount of an average trial raises participation in the tax amnesty program by approximately 22.5%.

Suggested Citation

  • Marcel Garz & Verena Pagels, 2017. "Cautionary Tales: Celebrities, the News Media, and Participation in Tax Amnesties," CESifo Working Paper Series 6795, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6795
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp6795.pdf
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    References listed on IDEAS

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    Cited by:

    1. Avdiu, Besart & Gruhle, Tobias, 2018. "Contagion and information frictions in emerging markets: the role of joint signals," MPRA Paper 84872, University Library of Munich, Germany.

    More about this item

    Keywords

    news coverage; public trial; self-denunciation; tax evasion;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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