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Analyzing Determinants of Tax Morale Based on Social Psychology Theory: Case Study of Iran

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  • MirHadi Hosseini Kondelaji

    (Department of Economics, University of Isfahan, Isfahan, Iran.)

  • Majid Sameti

    (Department of Economics, University of Isfahan, Isfahan, Iran.)

  • Hadi Amiri

    (Department of Economics, University of Isfahan, Isfahan, Iran.)

  • Rozita Moayedfar

    (Department of Economics, University of Isfahan, Isfahan, Iran.)

Abstract

While economic deterrence models are fully based on maximizing economic utility; social psychology models explain human behavior by examining the underlying attitudes, norms and beliefs. Tax morale is defined as the intrinsic motivation to pay taxes. However, determinants of tax morale need to be investigated for a more comprehensive understanding of tax morale. In this paper we analyze the most important determinants of tax morale in Iran using data from World Values Surveys (WVS). Determinants of tax morale are categorized into four main groups: social capital, conditional cooperation, demographic factors and economic situation of the respondents. Estimating ordered probit model, we find that conditional cooperation and economic situation have the most important effects on tax morality. However, some of the social capital variables like importance of politics and religion and demographic factors like gender and marital status don’t have significant effect on tax morale in Iran.

Suggested Citation

  • MirHadi Hosseini Kondelaji & Majid Sameti & Hadi Amiri & Rozita Moayedfar, 2016. "Analyzing Determinants of Tax Morale Based on Social Psychology Theory: Case Study of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 579-595, Autumn.
    • Handle: RePEc:eut:journl:v:20:y:2016:i:4:p:579
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    Cited by:

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    2. Meda Andini & Alfa Rahmiati, 2020. "Tax and compliance of individual taxpayer," Post-Print hal-03121022, HAL.
    3. Orkhan Nadirov & Khatai Aliyev & Bruce Dehning & Ilaha Sharifzada & Rafiga Aliyeva, 2021. "Life Satisfaction and Tax Morale in Azerbaijan: Mediating Role of Institutional Trust and Financial Satisfaction," Sustainability, MDPI, vol. 13(21), pages 1-10, November.
    4. Krakowski, Krzysztof & Ronconi, Lucas, 2023. "Compliance and Accountability: Evidence from a Field Experiment in Argentina," IDB Publications (Working Papers) 12930, Inter-American Development Bank.
    5. Adrian V. Horodnic & Colin C. Williams & Răzvan Ionuț Drugă & Cristian Incaltarau, 2021. "Informal Payments by Patients in Central and Eastern Europe during the COVID-19 Pandemic: An Institutional Perspective," IJERPH, MDPI, vol. 18(20), pages 1-17, October.
    6. Arun Sharma & Poonam Sharma & Jaspal Singh, 2023. "Analysing the Framework of Tax Compliance: A Study of Attitudinal Determinants," Metamorphosis: A Journal of Management Research, , vol. 22(1), pages 7-17, June.

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