This paper analyses fiscal autonomy in Germany. First, it provides an overview of fiscal autonomy. What is novel in this paper compared to previous studies is the development of a fiscal autonomy coefficient for the states, based on communal data. The basic intention in the empirical part is to analyse how fiscal autonomy affects the tax morale, defined as the intrinsic motivation to pay taxes,...

by Bruno S. Frey (University of Zurich) and Lars P. Feld (Philipps-University of Marburg) (this version 11 September 2003) Abstract The standard model of tax evasion based on the subjective expected utility maximization does not perform particularly well in econometric analyses: it predicts too little evasion and produces unsatisfactory econometric parameter estimates. The model is extended by ...

We embed the behaviour of tax evasion into the standard two-dimensional Ising model. In the presence of an external magnetic field, the Ising model is able to generate the empirically observed effect of tax morale, i.e. the phenomenon that in some countries tax evasion is either rather high or low. The external magnetic field captures the agents’ trust in governmental institutions. We also find...

Tax morale has been a focus of academics and policy makers for some time. The measurement individuals’ tax is subjective, various proxies have employed in qualitative quantitative research. framing these measures considered research with respect to equivalency or goal framing, but the underlying implication emphasis commonly used yet be considered. Further, although fairness financial literacy ...

Abstract Citizens' tax compliance should not only respond to the quality of formal institutions, but might also be culturally driven. We contribute this literature by investigating whether morale, an individual's intrinsic non-pecuniary motivation comply with taxes, is associated cultural values (following Hofstede's typology) held individual. The analysis exploits four waves European Values Su...