Family Ties and Underground Economy

Mauro Marè, Antonello Motroni and Francesco Porcelli

MPRA Paper from University Library of Munich, Germany

Abstract: This paper reports empirical evidence supporting the hypothesis that family ties should be listed among the causes of tax evasion. In societies where the power of the family is very high, the quality of public institutions tends to be low. This connection shapes the behavior of taxpayers and generates underground economy. The econometric analysis is based on linear panel data models, and a new dataset that combines data on personal values, social capital, and tax morale, in combination with an index of the shadow economy. The final results show that countries where family ties are stronger also exhibit higher underground economy.

Keywords: family ties; tax evasion; corruption; panel dat (search for similar items in EconPapers)
JEL-codes: C23 H26 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-iue, nep-pbe and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Family Ties and Underground Economy (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76059

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