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Fiscal Autonomy and Tax Morale: Evidence from Germany

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  • Benno Torgler
  • Jan Werner

Abstract

This paper analyses fiscal autonomy in Germany. First, it provides an overview of fiscal autonomy. What is novel in this paper compared to previous studies is the development of a fiscal autonomy coefficient for the states, based on communal data. The basic intention in the empirical part is to analyse how fiscal autonomy affects tax morale, defined as the intrinsic motivation to pay taxes, in Germany. Strong evidence has been found that a higher fiscal autonomy leads to a higher tax morale, controlling in a multivariate analysis for additional factors. Thus, this paper fills a gap in the tax compliance literature, which has rarely analysed the impact of fiscal autonomy on compliance

Suggested Citation

  • Benno Torgler & Jan Werner, 2005. "Fiscal Autonomy and Tax Morale: Evidence from Germany," CREMA Working Paper Series 2005-07, Center for Research in Economics, Management and the Arts (CREMA).
  • Handle: RePEc:cra:wpaper:2005-07
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    References listed on IDEAS

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    Cited by:

    1. Friedrich Heinemann, 2011. "Economic crisis and morale," European Journal of Law and Economics, Springer, vol. 32(1), pages 35-49, August.
    2. Benno Torgler & Christoph A. Schaltegger, 2005. "Tax Morale and Fiscal Policy," CREMA Working Paper Series 2005-30, Center for Research in Economics, Management and the Arts (CREMA).
    3. Nichita Ramona-Anca & Batrancea Larissa-Margareta, 2012. "The Implications Of Tax Morale On Tax Compliance Behavior," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 739-744, July.
    4. Benno Torgler & Christoph A. Schaltegger, 2006. "Tax Morale: A Survey with a Special Focus on Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(III), pages 395-425, September.
    5. Alessandro Belmonte & Roberto Dell'Anno & Desiree Teobaldelli, 2016. "Tax Morale, Aversion to Ethnic Diversity, and Decentralization," Working Papers 07/2016, IMT Institute for Advanced Studies Lucca, revised Dec 2016.
    6. Guglielmo Barone & Sauro Mocetti, 2011. "Tax morale and public spending inefficiency," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(6), pages 724-749, December.
    7. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370, April.
    8. Lars P. Feld & Benno Torgler & Bin Dong, 2008. "Coming Closer? Tax Morale, Deterrence and Social Learning after German Unification," CREMA Working Paper Series 2008-09, Center for Research in Economics, Management and the Arts (CREMA).
    9. Lago-Peñas, Ignacio & Lago-Peñas, Santiago, 2010. "The determinants of tax morale in comparative perspective: Evidence from European countries," European Journal of Political Economy, Elsevier, vol. 26(4), pages 441-453, December.
    10. Mauro Marè & Antonello Motroni & Francesco Porcelli, 2015. "Family Ties and Underground Economy," Working papers 16, Società Italiana di Economia Pubblica.
    11. Wilfried Anicet Kouamé, 2015. "Tax Morale and Trust in Public Institutions," Cahiers de recherche 15-14, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke, revised Oct 2017.

    More about this item

    Keywords

    Tax Morale; Tax Compliance; Fiscal Autonomy; Germany;

    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
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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