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Taxation, health system endowment and institutional quality: ‘Social media’ perceptions across Europe

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  • Cafferata, Alessia
  • Cerruti, Gianluca
  • Mazzone, Giulio

Abstract

In this paper we analyse how health system endowment and the quality of institutions impact perceptions towards taxation. We conduct a sentiment analysis of Twitter users' tweets to determine whether the impact of the Covid-19 health emergency has modified the attitudes of the citizens towards taxation in the four largest European countries: France, Germany, Italy and Spain. We use a difference-in-differences estimation strategy, comparing the average sentiments of individual tweets regarding taxation in different European NUTS-2 regions, before and after the spread of the Covid-19 pandemic. Our results highlight that in regions characterised by higher health system endowment people adopted more positive attitudes towards taxation with respect to those living in regions with low levels of health system endowment over the period 2019-2020. In addition, we show how higher quality institutions led to more positive perceptions in relative and absolute terms, suggesting a greater predisposition for a more progressive tax system.

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  • Cafferata, Alessia & Cerruti, Gianluca & Mazzone, Giulio, 2023. "Taxation, health system endowment and institutional quality: ‘Social media’ perceptions across Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 224-243.
    • Handle: RePEc:eee:jeborg:v:215:y:2023:i:c:p:224-243
    DOI: 10.1016/j.jebo.2023.09.010
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    More about this item

    Keywords

    Taxation; Sentiment analysis; Tax compliance; Health system endowment; Quality of institutions; Covid-19 crisis;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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