Yamamura, Eiji (2012): Norm for redistribution, social capital, and perceived tax burden: comparison between high- and low-income households.
Preview |
PDF
MPRA_paper_39434.pdf Download (487kB) | Preview |
Abstract
This paper explores how a perceived tax burden is influenced by the degree that neighbors prefer income redistribution. Further, this paper investigates how the influence of neighbors is affected by the degree of interaction between neighbors. For these purposes, individual-level data and place of residence data were combined. After controlling for individual characteristics, I obtained the following key findings: people are more likely to perceive the amount of tax as low when neighbors are more likely to support redistribution policies. Further, this neighbor effect increases when community participation rates are high. This tendency is clearly observed in high-income groups but not in low-income groups. This implies that the norm for redistribution leads rich people to consider the tax burden as low. Further, the effect of the norm increases when there is a greater accumulation of social capital within a residential area. That is, one’s perceived tax burden is influenced by psychological externalities.
Item Type: | MPRA Paper |
---|---|
Original Title: | Norm for redistribution, social capital, and perceived tax burden: comparison between high- and low-income households |
Language: | English |
Keywords: | Perceived tax; Norm; Redistribution; Social capital; Externality |
Subjects: | D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement D - Microeconomics > D3 - Distribution > D30 - General H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H29 - Other Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification |
Item ID: | 39434 |
Depositing User: | eiji yamamura |
Date Deposited: | 13 Jun 2012 14:40 |
Last Modified: | 27 Sep 2019 16:57 |
References: | Alesina, A., and Angeletos, G.M., (2005). Fairness and redistribution. American Economic Review 95, 960–980. Alesina, A., and Giuliano, P., (2009). Preferences for redistribution. NBER Working Papers 14825. Alesina, A., and La Ferrara, E., (2005). Preferences for redistribution in the land of opportunities. Journal of Public Economics 89, 897–931. Algan, Y., Cahuc, P and Sangnier, M, (2011). Efficient and inefficient welfare states, IZA Discussion Paper 5445. Alm, J., McClelland, G. H. and Schulze, W. D (1999). Changing the social norm of tax compliance by voting, Kyklos 52, 141-171. Balestrino, A. (2010). Tax avoidance and the endogenous formation of social norms, Journal of Socio-economics 39, 601-609. Baron, D.P., (2010), Morally motivated self-regulation. American Economic Review 100(4), 1299–2329. Bergh, A and Bjørnskov, C (2011). Historical Trust Levels Predict the Current Size of the Welfare State, Kyklos 64(1), 1-19. Becker, G (1974). Theory of social interaction, Journal of Political Economy 82, 1063–1093. Becker, G. (1996). Accounting for Tastes, Harvard University Press, London. Bjørnskov, C., (2006), The multiple facets of social capital. European Journal of Political Economy 22, 22–40. Chang, W.C. (2010). Religion and preferences for redistributive policies in an East Asian country. Poverty & Public Policy 2(4) article 5. Clark, A., Oswald, A., (1996). Satisfaction and comparison income. Journal of Public Economics 61, 359–381. Copeland, C., and Laband, D.N., (2002). Expressiveness and voting. Public Choice 110, 351–363. Corneo, G., and Grüner, H.P., (2002). Individual preferences for political distribution. Journal of Public Economics 83, 83–107. Cuccia, A. D and Gregory A. C. (2001), A closer look at the relation between tax complexity and tax equity perceptions, Journal of Economic Psychology 22, 113-140. Cullis, J., Jones, P and Savoia, A. (2012). Social norms and tax compliance: framing the decision to pay tax, Journal of Socio-economics 41, 159-168. Derin-Güre, P., and Nelsihan, U. (2010), Charitable giving under inequality aversion, Economics Letters 107, 208–210. Durlauf, S.N. (2002). On the empirics of social capital, Economic Journal 122, F459–F479. Fehr, E. and Schmidt, M. K. (1999). A theory of fairness, competition, and cooperation,’Quarterly Journal of Economics 114(3), 817–868. Feld, L. P and Bruno F. (2002), Trust breeds trust: how taxpayers are treated, Economic of Governance 3, 87-99. Feld, L. P and Bruno F. (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 and Larsen, C. (2012), Self-perceptions, government policies and tax compliance in Germany, International Tax Public Finance 19, 78-103. Foley, K. (2012). Can neighbourhoods change the decisions of youth on the margins of university participation? Canadian Journal of Economics 45, 167-188. Fong, C. (2001). Social preferences, self-interest, and the demand for redistribution, Journal of Public Economics 82, 225-246. Fortin, B., Lacroix, G., Villeval, M-C. (2007). Tax evasion and social interactions, Journal of Public Economics 91, 2089-2306. Galasso, V. (2003). Redistribution and fairness: A note. European Journal of Political Economy 19, 885–892. Gemmell, N., Oliver M and 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 and Abuzer. P (2004). Tax perceptions and preferences over tax structure in the United Kingdom, Economic Journal 114, F117-F138. Gomez, R., and Santor, E. (2001). Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers, Canadian Journal of Economics 34, 943-966. 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. and Nordblom, K. (2009). Perceived tax evasion and the importance of trust, Journal of Socio-economics 38, 238-245. Hayami, Y. (2001). Development Economics: From Poverty to the Wealth of Nations, second ed. Oxford University Press, New York. Hillman, A.L. (2010), Expressive behavior in economics and politics. European Journal of Political Economy 26, 403–418. Japan Broadcasting Corporation, 1997. Data Book: Survey on Consciousness of Prefecture Residents (Zenkoku Kenmin Ishiki Chosa, 1996), Japan Broadcasting Corporation Press, Tokyo. Klor, E.F., Shayo, M. (2010). Social identity and preferences over redistribution. Journal of Public Economics 94, 269–278. Luttens, R. and Valfort, M.A. (2011). Voting for redistribution under desert-sensitive altruism. Forthcoming in Scandinavian Journal of Economics. Luttmer, P. E. (2001). Group loyalty and the taste for redistribution. Journal of Political Economy 109 (3), 500–528. Luttmer, P. E (2005). Neighbors as negatives: Relative earnings and well-being. Quarterly Journal of Economics 120 (3), 963–1002. Luttmer, P. E and Singhal, M. (2011). Culture, context, and the taste for redistribution. American Economic Journal: Economic Policy 3 (1), 157–179. Ohtake, F., and Tomioka, J. (2004). Who supports redistribution? Japanese Economic Review 55(4), 333–354. Paldam, M., (2000). Social capital: one or many? Definition and measurement. Journal of Economic Surveys 14, 629–653. Putnam, R. (2000). Bowling Alone: The Collapse and Revival of American Community, A Touchstone Book, New York. Rainer, H. and Siedler, T. (2008), Subjective income and employment expectations and preferences for redistribution. Economics Letters 99, 449–453. Ravallion, M. and Lokshin, M., (2000), Who wants to redistribute? The tunnel effect in 1990 Russia. Journal of Public Economics 76, 87–104. Scholz, J.T. and Lubell, M. (1998). Trust and taxpaying: testing the heuristic approach to collective action, American Journal of Political Science 42, 398-417. Scholz, J.T. and Pinney, N. (1995). Duty, fear, and tax compliance: the heuristic basis of citizenship behavior, American Journal of Political Science 39, 490-512. Sobel, J. (2002), Can we trust social capital? Journal of Economic Literature 40, 139–154. Sobel, R.S. and 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., and 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. Tyran, J.-R. and Sausgruber, R. (2006), Little faireness induce a lot of redistribution in democracy, European Economic Review 50, 469-485. 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). Mis of social norms about tax compliance: from theory to intervention, Journal of Economic Psychology 26, 862-883. Yamamura, E. (2012). Social capital, household income, and preferences for income redistribution. Forthcoming in European Journal of Political Economy. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/39434 |