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This paper investigates the relationship between spatial inequality and attitudes towards tax compliance in the context of sub-Saharan African countries. Individuals' attitude toward tax is measured Using round six of the Afrobarometer geocoded data, and spatial inequality  measured in terms of a Gini computed over light intensity. Results suggest that spatial inequality is positively associated with tax attitude decision. However, this association depends on the size of the area over which Gini is computed. We provide results for various zones around individuals and find that inequality in the immediate surrounding of individuals has an effect on their attitudes towards taxation.  In order to deal with endogeneity problem we further use an instrumental variable approach, making use of an agglomeration model to predict the value of light at the year of the survey. These results are consistent with the OLS identification. We also examine the potential non-linearities in this relationship and find that, when facing high inequality, individuals in the middle of wealth distribution have unfavorable attitudes towards taxation. Finally we find in order for inequality to increase support for taxation, trust in the government should be high.

pdf : 919.96 KB
author(s) :
Lisa CHAUVET
Siyavash ESLAMI
Marin FERRY
Laure PASQUIER-DOUMER
coordinator :
Hélène EHRHART
collection :
Research Papers
issn :
2492 - 2846
pages :
50
number :
122
available also in : en
919.96 KB (pdf)
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