Nstitutional Factors Associated With Tax Morale: a Country Group-Level Analysis

Abstract

A growing literature coming from economics, sociology or psychology explores the wide range of variables that might explain voluntary compliance behaviour. The aim of this paper is to identify the institutional factors associated with tax morale and to highlight the resemblances and the differences among several countries across the world, grouped according to the level of development. Descriptive statistics and principal components analysis are used as methods and the analysis is carried out at country group level. The main results show that no matter the level of development, people' intrinsic motivation to pay taxes can be associated with good institutions and government ability to efficiently allocate public funds.