Nice guys finish last: Are people with higher tax morale taxed more heavily?

Research, Preprint English OPEN
Doerrenberg, Philipp; Duncan, Denvil; Fuest, Clemens; Peichl, Andreas;
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
  • Subject: Welt | Steuermoral | tax morale | H30 | H20 | political economy | H2 | H3 | Steuerbelastung | Public Choice | optimal taxation | Optimale Besteuerung | tax morale, tax compliance, optimal taxation, political economy | D7 | Schätzung | D70 | tax compliance
    • jel: jel:H20 | jel:H30 | jel:D70 | jel:H2 | jel:H3 | jel:D7
      ddc: ddc:330

This paper is the first to provide evidence of efficient taxation of groups with heterogeneous levels of 'tax morale'. We set up an optimal income tax model where high tax morale implies a high subjective cost of evading taxes. The model predicts that 'nice guys finish ... View more
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