Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161152
Authors: 
Frimmel, Wolfgang
Halla, Martin
Paetzold, Jörg
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10529
Abstract: 
Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria. This allowance is designed as a step function of the distance between the residence and the workplace, creating sharp discontinuities at each bracket threshold. The distance to these brackets is a strong determinant of compliance since it corresponds to the probability of detection. The match of different administrative data sources allows us to observe actual compliance behavior at the individual level across two generations. To identify the intergenerational causal effect in tax evasion behavior, we use the paternal distance-to-bracket as an instrumental variable for paternal compliance. We find that paternal noncompliance increases children's non-compliance by about 20 percent.
Subjects: 
tax evasion
tax morale
intergenerational correlation
intergenerational causal effect
JEL: 
H26
A13
H24
J62
D14
Document Type: 
Working Paper

Files in This Item:
File
Size
845.4 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.