Yamamura, Eiji (2012): Trust in government and its effect on preferences for income redistribution and perceived tax burden.
Download (737Kb) | Preview
This paper explores how a trust in government shared by neighbors is associated with individual preferences for income redistribution and individual perceptions regarding income tax burden. Three measures for trust in government are used: “trust in ministries and government agencies”, “trust in diet members”, and “trust in members of municipal councils”. After controlling for individual characteristics, the key findings are: (1) people are more likely to express preferences for income redistribution when trust in government in their residential area is high; (2) people are more likely to perceive their tax burden as low when trust in government in their residential area is high; and (3) when the sample is divided into high- and low-income earners, these results are only clearly observed for high-income earners and not low-income earners.
|Item Type:||MPRA Paper|
|Original Title:||Trust in government and its effect on preferences for income redistribution and perceived tax burden|
|Keywords:||Trust in government; Redistribution; Perception of tax; Inequality|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
D - Microeconomics > D3 - Distribution > D30 - General
Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
|Depositing User:||eiji yamamura|
|Date Deposited:||05. Jul 2012 09:45|
|Last Modified:||14. Feb 2013 12:42|
Aghion, P., Algan, Y., Chahuc, P., & Shleifer, A. (2010). Regulation and distrust. Quarterly Journal of Economics. 125(3), 1015-1049.
Alesina, A., & Angeletos, G.M., (2005). Fairness and redistribution. American Economic Review, 95, 960–980.
Alesina, A., De Tella, R. & MacCulloch, R. (2004). Inequality and happiness: are Europeans and Americans different? Journal of Public Economics, 88, 2009-2042.
Alesina, A., & Giuliano, P., (2009). Preferences for redistribution. NBER Working Papers 14825.
Alesina, A., & La Ferrara, E., (2005). Preferences for redistribution in the land of opportunities. Journal of Public Economics, 89, 897–931.
Algan, Y., & Cahuc, P. (2009). Civic virtue and labor market institutions. American Economic Journal: macroeconomics, 1(1), 111-145.
Algan, Y., Cahuc, P & Sangnier, M, (2011). Efficient and inefficient welfare states, IZA Discussion Paper 5445.
Bénabou, R. & Ok, E. A. (2001). Social mobility and the demand for redistribution: The POUM hypothesis. Quarterly Journal of Economics, 116 (2), 447-487.
Bergh, A & Bjørnskov, C (2011). Historical Trust Levels Predict the Current Size of the Welfare State. Kyklos, 64(1), 1-19.
Bjørnskov, C., Dreher,A, and Fischer, J.A.C.(2007). The bigger the better? Evidence of the effect of government size on life satisfaction around the world. Public Choice, 130, 267-292.
Bjørnskov, C., Dreher, A, and Fischer, J.A.V.. (2008a). Cross-country determinants of life satisfaction: exploring different determinants across groups in society. Social Choice and Welfare, 30, 119-173.
Bjørnskov, C., Dreher, A., and Fischer, J.A.V.. (2008b). „On decentralization and life satisfaction. Economics Letters, 99, 147-151.
Clark, A., & Oswald, A., (1996). Satisfaction and comparison income. Journal of Public Economics, 61, 359–381.
Copeland, C., & Laband, D.N., (2002). Expressiveness and voting. Public Choice, 110, 351–363.
Corneo, G., & Grüner, H.P., (2002). Individual preferences for political distribution. Journal of Public Economics, 83, 83–107.
Cuccia, A. D & Carnes, A. G. (2001), A closer look at the relation between tax complexity and tax equity perceptions. Journal of Economic Psychology, 22, 113-140.
Fehr, E. & Schmidt, M. K. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics ,114(3), 817–868.
Feld, L. P & Frey, B. (2002), Trust breeds trust: how taxpayers are treated. Economic of Governance, 3, 87-99.
Feld, L. P & Frey,B . (2007). Tax compliance as the result of a psychological tax contract: the role of incentives and responsive regulation. Law and Policy, 29, 102-120.
Feld, L. P & Larsen, C. (2012), Self-perceptions, government policies and tax compliance in Germany, International Tax Public Finance, 19, 78-103.
Galasso, V. (2003). Redistribution and fairness: A note. European Journal of Political Economy, 19, 885–892.
Gemmell, N., Oliver M & Abuzer. P (2003). Tax perceptions and demand for public expenditure: evidence from UK micro-data. European Journal of Political Economy, 19, 793-816.
Gemmell, N., Oliver M & Abuzer. P (2004). Tax perceptions and preferences over tax structure in the United Kingdom, Economic Journal, 114, F117-F138.
Gordon, J.P.F (1989). Individual morality and reputation cost as deterrents to tax evasion. European Economic Review, 33, 797-805.
Greene, W. (2008). Econometric Analysis (sixth ed.), Prentice-Hall, London.
Hammar, H., Jagers C, S. & Nordblom, K. (2009). Perceived tax evasion and the importance of trust. Journal of Socio-economics, 38, 238-245.
Hillman, A.L. (2010), Expressive behavior in economics and politics. European Journal of Political Economy, 26, 403–418.
Klor, E.F., & Shayo, M. (2010). Social identity and preferences over redistribution. Journal of Public Economics, 94, 269–278.
Kumlin, S. & Rothstein, B. (2005). Making and breaking social capital: The impact of welfare state institution. Comparative Political Studies, 38(4), 339-365.
Luttmer, P. E (2005). Neighbors as negatives: Relative earnings and well-being. Quarterly Journal of Economics, 120 (3), 963–1002.
Luttmer, P. E & Singhal, M. (2011). Culture, context, and the taste for redistribution. American Economic Journal: Economic Policy, 3 (1), 157–179.
Oh, H., & Hong, J.H. (2012). Citizen’s trust in government and their willingness to pay. Economics Letters, 115, 345-347.
Ohtake, F., & Tomioka, J. (2004). Who supports redistribution? Japanese Economic Review , 55(4), 333–354.
Rainer, H. & Siedler, T. (2008), Subjective income and employment expectations and preferences for redistribution. Economics Letters, 99, 449–453.
Ravallion, M. & Lokshin, M. (2000). Who wants to redistribute? The tunnel effect in 1990 Russia. Journal of Public Economics, 76, 87–104.
Rothstein, B. & Uslaner, E. (2006). All for all: equality, corruption and social trust. World Politics, 58, 41-72.
Scholz, J.T. & Lubell, M. (1998). Trust and taxpaying: testing the heuristic approach to collective action. American Journal of Political Science, 42, 398-417.
Scholz, J.T. & Pinney, N. (1995). Duty, fear, and tax compliance: the heuristic basis of citizenship behavior. American Journal of Political Science, 39, 490-512.
Sobel, R.S. & Wagner, G.A. (2004), Expressive voting and government redistribution: testing Tullock’s charity of the uncharitable. Public Choice, 119, 143–159.
Shields, M.A., Wheatley, PS. & Wooden, M. (2009), Life satisfaction and economic and social characteristics of neighborhoods. Journal of Population Economics, 22, 421–443.
Torgler, B. (2003). Tax moral, rule governed behavior and trust. Constitutional Political Economy, 14, 119-140.
Tullock, G. (1971). The charity of the uncharitable. Western Economic Journal, 9, 379–392.
Wenzel, M (2004). An analysis of norm processes in tax compliance. Journal of Economic Psychology, 25, 213-228.
Wenzel, M (2005 a). Motivation or rationalization? Causal relations between ethics, norms and tax compliance. Journal of Economic Psychology, 26, 491-508.
Wenzel, M (2005 b). Misperception of social norms about tax compliance: from theory to intervention. Journal of Economic Psychology, 26, 862-883.
Yamamura, E. (2012a). Government size and trust. Review of Social Economy, 70(1), 31-56.
Yamamura, E. (2012b). Social capital, household income, and preferences for income redistribution. Forthcoming in European Journal of Political Economy.