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Taxation and Conditional Cooperation

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  • Bruno S. Frey
  • Benno Torgler

Abstract

Why so many people pay their taxes, although fines and audit probability are low, has become a central question in the tax compliance literature. Concepts of Homo Economicus, endowed with a more refined motivation structure, help to shed light on the tax compliance puzzle. This paper provides empirical evidence for the relevance of conditional cooperation, using survey data from 30 European countries. The findings suggest that a higher perceived tax evasion leads to a lower tax morale, also when controlling for additional factors in a multivariate analysis.

Suggested Citation

  • Bruno S. Frey & Benno Torgler, 2004. "Taxation and Conditional Cooperation," CREMA Working Paper Series 2004-20, Center for Research in Economics, Management and the Arts (CREMA).
  • Handle: RePEc:cra:wpaper:2004-20
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    Citations

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    Cited by:

    1. Torgler, Benno & Schmidt, Sascha L & Frey, Bruno S., 2006. "The Power of Positional Concerns: A Panel Analysis," Berkeley Olin Program in Law & Economics, Working Paper Series qt1z14v7zt, Berkeley Olin Program in Law & Economics.
    2. Fabio Sánchez & Irina España, 2013. "Estructura, Potencial y Desafíos del Impuesto Predial en Colombia," DOCUMENTOS CEDE 011893, UNIVERSIDAD DE LOS ANDES-CEDE.
    3. Sujoy Chakravarty & Carine Sebi & E. Somanathan & E. Theophilus, 2011. "Voluntary Contribution in the Field: An Experiment in the Indian Himalayas," Working Papers id:3490, eSocialSciences.
    4. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2008. "The Power of Positional Concerns," CREMA Working Paper Series 2008-07, Center for Research in Economics, Management and the Arts (CREMA).
    5. Benno Torgler & Friedrich Schneider, 2005. "Attitudes Towards Paying Taxes in Austria: An Empirical Analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(2), pages 231-250, June.
    6. Benno Torgler & James Alm & Jorge Martinez-Vazquez, 2005. "Russian Attitudes Toward Paying Taxes – Before, During, and After the Transition (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0518, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "Relative Income Position And Performance: An Empirical Panel Analysis," IEW - Working Papers 268, Institute for Empirical Research in Economics - University of Zurich.
    8. Torgler, Benno & Schmidt, Sascha L. & Frey, Bruno S., 2006. "Relative Income Position and Performance: An Empirical Panel Analysis," Economic Theory and Applications Working Papers 12180, Fondazione Eni Enrico Mattei (FEEM).
    9. Friedel Bolle & Yves Breitmoser & Jana Heimel & Claudia Vogel, 2012. "Multiple motives of pro-social behavior: evidence from the solidarity game," Theory and Decision, Springer, vol. 72(3), pages 303-321, March.

    More about this item

    Keywords

    tax morale; tax compliance; tax evasion; pro-social behavior;

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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