Seminario 20/08: David Rodríguez-Justicia (URV): Voting with tax compliance: Ideological stances and tax morale

Información

Based on predictions from a theoretical model in which voters’ tax compliance behavior is driven by fairness concerns we empirically analyze the channels through which ideological stances influence citizens’ willingness to pay taxes. By using heteroskedasticity-based instrumental variables we find that ideological differences between citizens and their governments cause a decrease in tax morale. An electoral change from a right-wing to a left-wing government reduces tax morale, an effect that increases with the size of the public sector.