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Neuroimaging Field Methods Using Functional Near Infrared Spectroscopy NIRS Neuroimaging to Study Global Child Development: Rural Sub-Saharan Africa
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Fairness and Tax Morale in Developing Countries.

Néstor Castañeda1

  • 1Institute of the Americas, University College London, London, UK.

Studies in Comparative International Development
|June 26, 2023
PubMed
Summary
This summary is machine-generated.

Individuals sensitive to fairness in developing countries may view tax compliance differently, justifying evasion over civic duty. Attitudes toward tax compliance can change, influenced by reciprocity and merit perceptions.

Keywords:
FairnessPreferences for redistributionTax complianceTax morale

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Area of Science:

  • Behavioral Economics
  • Public Finance
  • Development Economics

Background:

  • Understanding tax compliance is crucial for fiscal capacity in developing nations.
  • Individual attitudes towards fairness significantly influence economic behaviors.
  • Existing research often overlooks the nuanced relationship between fairness perceptions and tax morale.

Purpose of the Study:

  • To investigate the link between fairness attitudes and tax compliance views in developing countries.
  • To explore how perceptions of reciprocity and merit mediate this relationship.
  • To examine the impact of inequality sensitivity on tax morale.

Main Methods:

  • Utilized survey data from 18 major cities across Latin America.
  • Employed statistical analysis to identify correlations and mediating factors.
  • Focused on individual-level data to understand subjective attitudes.

Main Results:

  • High sensitivity to fairness correlates with viewing tax payment as less of a civic duty and more justification for tax evasion.
  • Reciprocity and merit perceptions act as mediators between fairness attitudes and tax compliance.
  • Perceptions of income distribution and inequality significantly affect tax morale.

Conclusions:

  • Fairness perceptions are a key determinant of tax compliance attitudes in developing economies.
  • Interventions promoting a sense of fairness and reciprocity may enhance tax morale.
  • Addressing inequality sensitivity is vital for strengthening fiscal capacity and fostering economic growth.