Is the level of taxation a product of culture? A cultural economics approach

The role played by the state is one of the most important problems facing economic science. Apart from its role as welfare provider, the state is inevitably confronted by the shared cultural values of its citizens. This paper evaluates the role of culture in explaining the differences in the tax rev...

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Bibliographic Details
Published inSociety and economy Vol. 35; no. 4; pp. 513 - 529
Main Authors Čábelková, Inna, Strielkowski, Wadim
Format Journal Article
LanguageEnglish
Published Budapest Akadémiai Kiadó 01.12.2013
Academic Publishing House
Akademiai Kiado
Akademiai Kiado Zrt
Subjects
Analysis
Cultural values
Culture
Culture and social structure
Economic aspects
Economic development
Economic policy
Economic theory
Economists
Femininity
Fiscal Politics / Budgeting
GDP
Gross Domestic Product
National Economy
Per capita
Public Finances
Studies
Tax rates
Tax revenue estimating
Tax revenues
Taxation
Taxes
United States
cultural values
state
taxation
tax revenues
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Summary:The role played by the state is one of the most important problems facing economic science. Apart from its role as welfare provider, the state is inevitably confronted by the shared cultural values of its citizens. This paper evaluates the role of culture in explaining the differences in the tax revenues as percentage of GDP on a cross-sectional dataset from 41 countries. The results suggest that the association between shared cultural values, on the one side, and tax revenues as a percentage of GDP, on the other side, proves to be statistically significant. Our results indicate that it is important to take culture into account when designing optimal economic policies and planning the increase of tax revenues.
ISSN:1588-9726
1588-970X
DOI:10.1556/SocEc.2013.0007