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Slippery slope framework, tax morale and tax compliance: a theoretical integration and an empirical assessment

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  • Gaetano Lisi

    (University of Cassino)

Abstract

Many empirical works confirmed the capacity of the "slippery slope" framework and tax morale in explaining tax compliance. So far, however, very few studies tried to fully integrate these two main behavioral approaches to understanding tax compliance. Indeed, a theoretical underpinning is still missing. In this paper, therefore, we first introduce tax morale and the “slippery slope” framework into an economic model of taxpayer’s behavior and then we test it empirically. We find that for increasing overall tax compliance, voluntary tax compliance (trust and tax morale) is more effective than enforced tax compliance. Eventually, from a policy point of view, we suggest a strategy based on rewards for honest taxpayers.

Suggested Citation

  • Gaetano Lisi, 2019. "Slippery slope framework, tax morale and tax compliance: a theoretical integration and an empirical assessment," Discussion Papers in Economic Behaviour 0219, University of Valencia, ERI-CES.
    • Handle: RePEc:dbe:wpaper:0219
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    2. Adamu Jibir & Musa Abdu & Tasiu Muhammad, 2020. "Analysis of Tax Compliance in Sub-Saharan Africa: Evidence from Firm-Level Study," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 119-142, December.

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    More about this item

    Keywords

    tax compliance; tax evasion; voluntary tax compliance; tax morale; enforced tax compliance;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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