Willing to pay? : tax compliance in Britain and Italy : an experimental analysis
PLOS One, 2016, Vol. 11, No. 2, e0150277
ZHANG, Nan, ANDRIGHETTO, Giulia, PONZANO, Ferruccio, OTTONE, Stefania, STEINMO, Sven, Willing to pay? : tax compliance in Britain and Italy : an experimental analysis, PLOS One, 2016, Vol. 11, No. 2, e0150277 - https://hdl.handle.net/1814/42624
Retrieved from Cadmus, EUI Research Repository
As shown by the recent crisis, tax evasion poses a significant problem for countries such as Greece, Spain and Italy. While these societies certainly possess weaker fiscal institutions as compared to other EU members, might broader cultural differences between northern and southern Europe also help to explain citizens’ (un)willingness to pay their taxes? To address this question, we conduct laboratory experiments in the UK and Italy, two countries which straddle this North-South divide. Our design allows us to isolate the influence of cultural factors on individuals’ willingness to pay taxes while holding institutions constant. We report a surprising result: when faced with identical tax institutions and audit probabilities, Italian participants are significantly more likely to comply than Britons. Overall, our findings directly contradict “culturalist” arguments that would attribute cross-country differences in tax compliance to the lack of morality amongst southern European taxpayers.
Published on February 26, 2016
Cadmus permanent link: https://hdl.handle.net/1814/42624
Full-text via DOI: 10.1371/journal.pone.0150277
ISSN: 1932-6203; 1932-6203
Publisher: Public Library of Science
Grant number: FP7/295675/EU
Sponsorship and Funder information:
The research leading to these results has received funding from the European Research Council under the European Union's Seventh Framework Programme (FP7/2007-2013)/ERC Grant Agreement n. 295675.
Files associated with this item
- Full-text in Open Access, Published ...