Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Political Economy II No. E20-V3
Does tax evasion run in the family? We study the case of the commuter tax allowance in Austria, which is designed as a step function of the commuting distance, creating sharp discontinuities at each bracket threshold. The data sources allow us to observe actual compliance behavior at the individual level. To identify a causal effect, we use the paternal distance-to-bracket as an IV for paternal compliance. We find that paternal noncompliance increases children's non-compliance by about 24%.