Tax Morale and Compliance Behavior: First Evidence on a Causal Link

By Martin Halla. Social Science Research Network, 2012

161 citations recorded by the source corpus.

Abstract Recent literature on tax evasion emphasizes the importance of moral considerations to explain compliance behavior. As a consequence scholars aim to identify factors that shape this so-called tax morale. However, the causal link between tax morale and actual compliance behavior is not established yet. Exploiting exogenous variation in tax morale – given by the inherited part of tax morale of American-born from their ancestors country of origin – our Two-Stage Least Square Estimation provides first evidence on a causal effect of tax morale on the size of the underground production.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/f86294f2e8d05daa97d217cc4cd03fd5bcb6eb81

Citations in the corpus

• Progressive taxation and tax morale (2011, unknown): “Based on both previous literature and his own empirical findings, Halla (2010) concludes that (i) economic scholars need to be interested in the determining factors of tax morale because it unambiguously affects actual tax compliance behavior and (ii) policy makers can alter tax evasion by…”
• The effect of tax enforcement on tax morale (2013, unknown): “Recently, Halla (2012) shows that tax morale has some causal impact on tax compliance levels.”