AN EMPIRICAL ANALYSIS OF TAX MORALE IN BOSNIA-HERZEGOVINA

Öz

In this paper, determinants of tax morale in Bosnia-Herzegovina are searched. Tax morale is an ordered categorical dependent variable. Therefore, ordered probit model is estimated to derive the relations between tax morale and relevant variables. For the model, demographic factors, employment status, economic status and social capital variables are used as independent variables. For this paper, European Values Study (EVS) database is used to analyze the level of tax morale and its determinants in Bosnia-Herzegovina. The fourth wave of the EVS is used for this aim. EVS is a survey which researched socio-cultural and political changes in Europe. The fourth wave has 47 countries representing the majority of the European population. In this survey, individuals are asked to respond the following question to evaluate level of tax morale; Please tell me for the following statement whether you think it can always be justified, never be justified, or something in between: … ‘Cheating on tax if you have the chance’. The question leads to a ten-scale index of tax morale with the two extreme points ‘never justified’ and ‘always justified’.

Anahtar Kelimeler

• tax morale, public finance, ordered probit

AN EMPIRICAL ANALYSIS OF TAX MORALE IN BOSNIA- HERZEGOVINA

Öz

Tax morale is defined an intrinsic motivation of paying taxes, and it is closely related to tax compliance. It is essential to search determinants of tax morale for a comprehensive understanding of tax compliance . In this paper, determinants of tax morale in BosniaHerzegovina are searched. Tax morale is an ordered categorical dependent variable. Therefore, ordered probit model is estimated to derive the relations between tax morale and relevant variables. The magnitudes of estimated coefficients are not interpreted; their signs are taken into account since ordered probit model refers to a nonlinear equation. The marginal effects are computed to determine the effect of each variable on tax morale. Marginal effect indicates the change in the probability of specific tax morale category when an independent variable changes by one unit. The indicators related to demographic features (gender, age, marital status), employment status (self employed, retired, student etc.), economic status (income levels) and social capital (religiosity, confidence in government, confidence in justice system, confidence in parliament, education levels etc.) are the independent variables used in the model. The effects of these variables on tax morale are analyzed . For this aim, a relevant dataset obtained from European Values Study (EVS) database is used in estimating the model. EVS is a survey researching socio-cultural and political changes in Europe. The question related to tax morale in the survey is classified as the dependent variable of the model. The findings from the estimated model suggest that some of the social capital variables, demographic factors and income level have important effects on tax morale

Anahtar Kelimeler

• Tax morale, Tax Compliance, Public Finance, Ordered Probit Model

Kaynakça

1. REFERENCES
2. Alm, J. and Torgler B. (2005), “Estimating the Determinants of Tax Moralee”, National Tax Association Papers and Proceedings (Minneapolis:2004), pp. 269-274
3. Alm, J. and Torgler, B. (2006), “Culture Differences and Tax Moralee in the United States and Europe”, Journal of Economic Psychology, Vol. 27, Iss. 2, pp. 224-246
4. Cummings, R. G., Martinez-Vazquez, J., McKee, M. and Torgler, B. (2006), “Effects of Tax Moralee on Tax Compliance: Experimental and Survey Evidence”, Working Paper Series, Berkeley Program in Law and Economics
5. Duch, R. M., Palmer, H. D. and Anderson Christopher J. (2000), “Heterogeneity in Perceptions of National Economic Conditions”, American Journal of Political Science, Vol. 44, Iss. 4, pp. 635-652
6. Feld, L. P. and Frey, Bruno S. (2002), “Trust Breeds Trust: How Taxpayers Are Treated”, Economics of Govarnance, Vol.3, Iss. 3, pp. 87-99
7. Frank, Robert H. (1996), “What Price the Morale High Ground?”, Southern Economic Journal, Vol. 63, Iss. 1, pp. 1-17
8. Gökbunar, A. R., Selim, S. and Yanıkkaya, H. (2007), “Türkiye’de Vergi Ahlakını Belirleyen Faktörler Üzerine Bir Araştırma”, Ekonomik Yaklaşım, c. 18, S. 63, ss. 69-94

9. Greene, Wiliam H.(2003), Econometric Analysis, Prentice Hall, Fifth Edition, New jersey
10. Greene, William H. (2007), LIMDEP Student Reference Guide, New York
11. Hull, Brooks B. (2000), “Religion Still Matters”, The Journal of Economics”, Vol. 26, No. 2, pp. 35-48
12. McKelvey, R. and Zavoina, W. (1975), “A Statistical Model for the Analysis of Ordinal Level Dependent Variables”, Journal of Mathematical Sociology, 4, 103-120
13. Martinez-Vazquez, Jorge and Torgler, Benno (2009), “The Evolution of Tax Moralee in Modern Spain”, Journal of Economic Issues, Vol. 43, No. 1, pp. 1-26
14. Montero, Jose R. and Torcal, Mariano (2006), “Political Disaffection in Comparative Perspective”, Political Disaffection in Contemporary Democracies: Social Capital, Institutions, and Politics, Ed. Torcal, Mariano ve Montero, Jose R. (London: Routledge)
15. Schmölders, Günter (1976), Genel Vergi Teorisi (Translator. Salih Turhan), İstanbul: Fakülteler Matbaası
16. Torgler, Benno (2004), “Tax Moralee in Asian Countries”, Journal of Asian Economics, Vol. 15, Iss. 2, pp. 237-266
17. Torgler, Benno (2005), “Tax Moralee and Direct Democracy”, European Journal of Political Economy, V.21, Iss. 2, pp. 525-531
18. Torgler, Benno (2006), “The Importance of Faith: Tax Moralee and Religiosity”, Journal of Economic Behavior & Organization, Vol. 61, Iss. 1, pp. 81-109
19. Torgler, Benno (2007), Tax Compliance and Tax Moralee: A Theoretical and Empirical Analysis, İngiltere: Edward Elgar, Cornwall
20. Torgler, Benno ve F. Schneider (2006), “What Shapes Attitudes toward Paying Taxes? Evidence from Multicultural European Countries”, Berkeley Program in Law & Economics, Working Paper Series, No. 190
21. Veall, M.R. and Zimmermann, K.F. (1996) “Pseudo-R2 Measures for Common Limited Dependent Variable Models”, Journal of Economic Surveys, V.10, 241-259