?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F3609%2F&rft.title=Tax+Morale%2C+Aversion+to+Ethnic+Diversity%2C+and+Decentralization&rft.creator=Belmonte%2C+Alessandro&rft.creator=Dell'Anno%2C+Roberto&rft.creator=Teobaldelli%2C+D%C3%A9sir%C3%A9e&rft.subject=HB+Economic+Theory&rft.subject=HN+Social+history+and+conditions.+Social+problems.+Social+reform&rft.description=This+paper+analyzes+the+relationship+between+individuals'+aversion+to+ethnic+diversity%2C+the+degree+of+fiscal+and+political+decentralization%2C+and+tax+morale.+Our+theory+is+based+on+the+assumption+that+individuals+are+risk+averse+in+contributing+to+the+provision+of+public+goods+benefiting+other+ethnic+groups%2C+and+threfore+display+a+lower+tax+morale.+We+find+scope+for+policy+intervention-specifically%2C+our+model+predicts+that+the+effect+of+individuals'+aversion+to+ethnic+diversity+on+taxmorale+is+smaller+or+null+in+decentralized+political+and+fiscal+systems+relative+to+centralized+ones.+The+theory+highlights+the+role+of+decentralization+reforms+to+cut+down+inter-ethnic+redistribution+in+con+icting+environments.+We+test+our+results+by+using+individual+data+from+the+World+Value+Survey%2C+and+several+decentralization+measures+from+Fan+et+al.+(2009).+According+to+our+most+preferred+estimation%2C+a+one-scale+change+in+the+attitude+toward+ethnic+diversity+reduces+tax+morale+of+0.03+in+centralized+system.+We+rather+find+no+impact+in+decentralized+states.&rft.publisher=IMT+School+for+Advanced+Studies+Lucca&rft.date=2016-12&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.rights=cc_by_nd&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F3609%2F1%2FEIC_WP_7_2016.pdf&rft.identifier=++Belmonte%2C+Alessandro+and+Dell'Anno%2C+Roberto+and+Teobaldelli%2C+D%C3%A9sir%C3%A9e++Tax+Morale%2C+Aversion+to+Ethnic+Diversity%2C+and+Decentralization.++EIC+working+paper+series++%237%2F2016++++IMT+School+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++++