Reciprocity and willingness to pay taxes: evidence from a survey experiment in Latin America

Ortega, Daniel, Ronconi, Lucas and Sanguinetti, Pablo (2016) Reciprocity and willingness to pay taxes: evidence from a survey experiment in Latin America. Economía, 16 (2). 55 - 88. ISSN 1529-7470

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Abstract

Are citizens more willing to pay taxes when the government’s performance improves? We review the tax morale literature, disentangling its different components, and provide empirical evidence exploiting a novel survey conducted in seventeen Latin American cities and an experimental attempt at measuring reciprocity in tax collection in developing countries. The evidence suggests that governments interested in increasing tax revenues should not focus solely on escalating the coercive power of the state (that is, more audits and fines). Rather, providing better public services to society can be an effective (albeit limited) tool to raise revenues.

Item Type:	Article
Official URL:	https://economia.lse.ac.uk/
Additional Information:	© 2016 LACTEA
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HJ Public Finance
JEL classification:	O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America; Caribbean H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion
Date Deposited:	10 Jul 2024 16:45
Last Modified:	14 Sep 2024 10:00
URI:	http://eprints.lse.ac.uk/id/eprint/123088

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