The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria
| Autor: | Jörg Paetzold, Martin Halla, Wolfgang Frimmel |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2017 |
| Předmět: |
tax evasion
H24 H26 Tax evasion Allowance (money) intergenerationalcausal effect Compliance (psychology) 0502 economics and business Economics ddc:330 D14 050207 economics A13 050205 econometrics 05 social sciences Instrumental variable Causal effect Individual level intergenerational correlation Demographic economics Residence J62 General Economics Econometrics and Finance Compliance behavior intergenerational causal effect tax morale |
| Popis: | Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria. This allowance is designed as a step function of the distance between the residence and the workplace, creating sharp discontinuities at each bracket threshold. It turns out that the distance to the next higher bracket is a strong determinant of compliance. The match of different administrative data sources allows us to observe actual compliance behavior with little error at the individual level across two generations. To identify the intergenerational causal effect in tax evasion behavior, we use the paternal distance to next higher bracket as an instrumental variable for paternal compliance. We find that paternal noncompliance increases children’s noncompliance by about 23%. |
| Databáze: | OpenAIRE |
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