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The Impact of Direct Democracy and Local Autonomy on Tax Morale in Switzerland

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  • Benno Torgler

Abstract

This paper analyses the impact of direct democracy and local autonomy on tax morale and the size of the shadow economy. We use two different data sets on tax morale at the individual level (World Values Survey and International Social Survey Programme) and the macro data of the size of the shadow economy to systematically analyse the effects of institutions in Switzerland, a country where participation rights and the degree of federalism vary across different cantons. The findings suggest that direct democratic rights and local autonomy, have a significantly positive effect on tax morale and the size of the shadow economy.

Suggested Citation

  • Benno Torgler, 2007. "The Impact of Direct Democracy and Local Autonomy on Tax Morale in Switzerland," Working Papers 06-2007, Institute of Local Public Finance.
    • Handle: RePEc:lpf:wpaper:06-2007
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    File URL: http://www.ilpf.de/en/download/wp-06-2007.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gebhard Kirchgässner, 2011. "Tax Morale, Tax Evasion and the Shadow Economy," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 10, Edward Elgar Publishing.
    2. Ross Adriana M. & McGee Robert W., 2011. "Attitudes toward Tax Evasion: A Demographic Study of Malaysia," Asian Journal of Law and Economics, De Gruyter, vol. 2(3), pages 1-51, October.

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    More about this item

    Keywords

    Tax Morale; Shadow Economy; Tax Compliance; Tax Evasion; Direct Democracy; LocalAutonomy;
    All these keywords.

    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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