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Persistence or Convergence? The East-West Tax-Morale Gap in Germany

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  • Axel Möhlmann

Abstract

This paper studies differences in tax-morale attitudes between East and West Germany using multiple recent data sets. Contrary to previous 1990s evidence, but in line with recent studies on an east-west mentality gap, we find a persistent higher tax morale in East Germany and no indication of convergence over time. Distinguishing between region of living and birth reveals that East Germans who stayed determine the results and that migration reduces differences. Regional economic heterogeneity cannot explain the results, whereas historical patterns of religious denomination absorb part of the effect. An effect of question phrasing illustrates underlying moral reasoning.

Suggested Citation

  • Axel Möhlmann, 2014. "Persistence or Convergence? The East-West Tax-Morale Gap in Germany," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 70(1), pages 3-30, March.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201403)70:1_3:poctet_2.0.tx_2-w
    DOI: 10.1628/001522108X679138
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    Cited by:

    1. Sascha O. Becker & Lukas Mergele & Ludger Woessmann, 2020. "The Separation and Reunification of Germany: Rethinking a Natural Experiment Interpretation of the Enduring Effects of Communism," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 143-171, Spring.
    2. Lóránd Králik & Erzsébet Szász, 2019. "VAT - Gap Convergence in Central and Eastern Europe," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 772-778, December.

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    More about this item

    Keywords

    tax morale; German reunification; east-west differences; convergence; moral reasoning;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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