Essays on tax morale

Abstract

This thesis uses experiments and theory to explore “Tax Morale” which is the broad concept that groups taxpayer’s non-pecuniary nor legally enforced reasons to give money to governments. I assume that giving is motivated by consequentialist norms, as well as conditional on (a) others’ behavior and (b) the person’s beliefs about how competent the public sector is, together with her/his support to the current government. The evidence from a lab experiment in Peru is in line with these hypotheses. Further, less people give zero if they are informed about (i) two specific government projects (a subway line and a children’s hospital) or (ii) that some well-known Olympic medalist pays punctually her taxes, according to public information released by the Peruvian tax Agency. The findings are arguably relevant to understand taxpayers’ non-selfish reasons to pay (or evade) their taxes and contribute to the recent literature on tax morale.