eprintid: 3609
rev_number: 19
eprint_status: archive
userid: 6
dir: disk0/00/00/36/09
datestamp: 2016-12-22 10:10:55
lastmod: 2017-01-13 10:08:17
status_changed: 2016-12-22 10:10:55
type: monograph
metadata_visibility: show
creators_name: Belmonte, Alessandro
creators_name: Dell'Anno, Roberto
creators_name: Teobaldelli, Désirée
creators_id: alessandro.belmonte@imtlucca.it
creators_id: 
creators_id: 
title: Tax Morale, Aversion to Ethnic Diversity, and Decentralization
ispublished: pub
subjects: HB
subjects: HN
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: Keywords: Ethnic diversity, Decentralization, Tax morale, Risk-aversion.   JEL Classification: J15, H26, H73
abstract: This paper analyzes the relationship between individuals' aversion to ethnic diversity, the degree of fiscal and political decentralization, 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, and threfore display a lower tax morale. We find scope for policy intervention-specifically, 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, and several decentralization measures from Fan et al. (2009). According to our most preferred estimation, 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.
date: 2016-12
number: 7
publisher: IMT School for Advanced Studies Lucca
pages: 37
institution: IMT Institute for Advanced Studies Lucca
issn: 2279-6894
citation:   Belmonte, Alessandro and Dell'Anno, Roberto and Teobaldelli, Désirée  Tax Morale, Aversion to Ethnic Diversity, and Decentralization.  EIC working paper series  #7/2016    IMT School for Advanced Studies Lucca    ISSN 2279-6894.      
document_url: http://eprints.imtlucca.it/3609/1/EIC_WP_7_2016.pdf