Attitudes and responses to corruption in tax systems: peer effects and social influences in transition countries
ISSN: 0144-3585
Article publication date: 24 March 2021
Issue publication date: 29 March 2022
Abstract
Purpose
Analyze how peer effects and social influences affect attitudes and responses to corruption in tax systems, identifying factors that improve tax morale.
Design/methodology/approach
Life in Transition Survey (LITS III, 2016) data are analyzed using ordered probit models of corrupt tax officials, Heckman-style selection models of the extent of corruption, probit models of reasons given for not reporting corruption and ordered probit models of the frequency of informal payments to tax officials.
Findings
Peer effects and social influences significantly affect perceptions of and responses to corruption. Tax morale is supported in communities where people trust one another, where there is greater respect for the law and where people can achieve greater life satisfaction.
Research limitations/implications
Results are specific to transition countries represented in the data.
Practical implications
Findings can help improve tax morale and stabilize fiscal systems in transition countries.
Social implications
Enhanced tax morale can be facilitated by building inclusive, respectful and transparent institutions.
Originality/value
This study uses the latest LITS III data with a focus on peer effects and social influences, with improved empirical strategies.
Keywords
Citation
Anderson, J.E. (2022), "Attitudes and responses to corruption in tax systems: peer effects and social influences in transition countries", Journal of Economic Studies, Vol. 49 No. 3, pp. 472-488. https://doi.org/10.1108/JES-07-2020-0351
Publisher
:Emerald Publishing Limited
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