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Trust in Government and Willingness to Pay Taxes in Transition Countries

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  • John E. Anderson

    (University of Nebraska-Lincoln)

Abstract

This paper examines citizen trust in government institutions and the effect of trust on willingness to pay taxes for public goods/services in transition countries. Empirical models are estimated to test whether trust in government has a positive effect on WTP for improved public education, improved public health system, combating climate change, and helping the needy. Data are from the European Bank for Reconstruction and Development’s Life in Transition Survey, 2010. Results indicate that trust in government generally has a significant positive effect on WTP for public goods, although differences are found among government institutions and across public goods.

Suggested Citation

  • John E. Anderson, 2017. "Trust in Government and Willingness to Pay Taxes in Transition Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 1-22, March.
    • Handle: RePEc:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0017-x
    DOI: 10.1057/s41294-016-0017-x
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    References listed on IDEAS

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    2. Nina Bandelj & Christopher W. Gibson, 2020. "Contextualizing Anti-Immigrant Attitudes of East Europeans," Review of European Studies, Canadian Center of Science and Education, vol. 12(3), pages 1-32, September.
    3. Anderson, John E., 2024. "Confidence in the world bank and IMF: Alignment of individual beliefs and institutional policies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 93(C).
    4. Erica Poma & Barbara Pistoresi, 2024. "Government Support Measures, Trust in Institutions and Effects on Satisfaction with Democracy During the COVID-19 Outbreak," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(2), pages 355-387, June.
    5. Amadou Boly & Maty Konte & Abebe Shimeles, 2021. "Corruption Perception and Attitude Towards Taxation in Africa [To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa]," Journal of African Economies, Centre for the Study of African Economies, vol. 30(Supplemen), pages 140-157.
    6. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    7. Giese, Henning & Heinemann-Heile, Vanessa, 2024. "Firms' willingness to pay local business tax: The impact of trust and public goods," arqus Discussion Papers in Quantitative Tax Research 287, arqus - Arbeitskreis Quantitative Steuerlehre.
    8. Chaikumbung, Mayula & Doucouliagos, Hristos & Scarborough, Helen, 2019. "Institutions, Culture, and Wetland Values," Ecological Economics, Elsevier, vol. 157(C), pages 195-204.
    9. Denis Ivanov, 2023. "Economic Insecurity, Institutional Trust and Populist Voting Across Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(3), pages 461-482, September.
    10. Eric J. Brunner & Yusun Kim & Mark D. Robbins & Bill Simonsen, 2024. "The impact of performance information on citizen perceptions of school district efficiency, trust in government, and support for taxes," Public Budgeting & Finance, Wiley Blackwell, vol. 44(2), pages 6-44, June.
    11. Mwoya Byaro & Abel Kinyondo, 2020. "Citizens' Trust in Government and Their Greater Willingness to Pay Taxes in Tanzania: A Case Study of Mtwara, Lindi, and Dar es Salaam Regions," Poverty & Public Policy, John Wiley & Sons, vol. 12(1), pages 73-83, March.
    12. Keefer, Philip & Scartascini, Carlos & Vlaicu, Razvan, 2022. "Demand-side determinants of public spending allocations: Voter trust, risk and time preferences," Journal of Public Economics, Elsevier, vol. 206(C).
    13. Peter Dolton & Mehmet Kutluay & Richard S.J. Tol, 2019. "Attitudes Towards Public Health Spending: The Case of the National Health Service in the United Kingdom," Working Paper Series 0719, Department of Economics, University of Sussex Business School.

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    More about this item

    Keywords

    trust in government; transition economies; willingness to pay taxes; taxation; redistribution;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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