?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F3894%2F&rft.title=Tax+Morale%2C+Fiscal+Capacity%2C+and+Wars&rft.creator=Belmonte%2C+Alessandro&rft.creator=Teobaldelli%2C+D%C3%A9sir%C3%A9e&rft.creator=Ticchi%2C+Davide&rft.subject=HB+Economic+Theory&rft.description=This+paper+studies+how+mobilization+for+war+motivates+citizens+to+contribute+to+their%0D%0Aown+community+and+therefore+help+forming+tax+morale+in+a+constituency.+We+derive+a%0D%0Atheoretical+model+to+investigate+government's+decision+to+expand+tax+revenues+from+alternative%0D%0Asources%2C+namely+changing+the+country's+culture+of+tax+compliance+or+expanding%0D%0Afiscal+capacity.+Despite+the+two+are+initially+substitute%2C+we+show+how+in+equilibrium+dynamic%0D%0Acomplementarity+arises.+Our+mechanism+exploits+exogenous+variation+in+the+cost+of%0D%0Atax+morale+formation%2C+induced+by+an+expected+war+(either+internal+or+external)+that+makes%0D%0Aeasier+for+the+government+to+mobilize+the+constituency.+We+motivate+our+theory+through+a%0D%0Anovel+cross-country+analysis+that+uses+information+on+war+frequency%2C+tax+morale%2C+and+fiscal%0D%0Acapacity.+We+additionally+discuss+some+historical+cases+consistent+with+our+mechanism.&rft.publisher=IMT+School+for+Advanced+Studies+Lucca&rft.date=2018-02&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%2F3894%2F1%2FEIC_WP_3_2018.pdf&rft.identifier=++Belmonte%2C+Alessandro+and+Teobaldelli%2C+D%C3%A9sir%C3%A9e+and+Ticchi%2C+Davide++Tax+Morale%2C+Fiscal+Capacity%2C+and+Wars.++EIC+working+paper+series++%233%2F2018++++IMT+School+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++++