FG VWL, insbesondere Mikroökonomik
Refine
Year of publication
Document Type
- Scientific journal article peer-reviewed (60) (remove)
Way of publication
- Open Access (2)
Keywords
- Inequality (3)
- Economic policy (2)
- Fiscal federalism (2)
- Formal institutions (2)
- Informal institutions (2)
- Paternalismus (2)
- Redistribution (2)
- Social norms (2)
- Tax evasion (2)
- Tax morale (2)
Institute
- FG VWL, insbesondere Mikroökonomik (60) (remove)
It is proposed that a more accurate prediction of tax evasion activity than in the standard portfolio-choice model can be derived even for risk-neutral individuals if psychological costs are considered. Contrary to earlier models integrating psychological costs they are systematically derived by assuming a relationship between psychological costs, taxpayer satisfaction with public policy and taxes evaded. A formal concept of legitimacy of public policies is introduced and it is shown that legitimacy influences evasion activity.
Public entrepreneurship is commonly understood as the outcome of the activities of a Schumpeterian political innovator. However, empirical research suggests that changes to a more efficient economic policy, even if it is known and technically easy to implement, are usually delayed. This is difficult to reconcile with Schumpeterian notions of public entrepreneurship. In this paper, it is argued that the attempt to transfer a Schumpeterian approach to the public sector is fundamentally flawed. Institutional checks and balances that characterise most modern liberal democracies make the strategy of bold leadership an unlikely choice for an incumbent. If change occurs, it occurs normally as a response to the fact that the status quo has become untenable. From a normative point of view, it is argued that if public entrepreneurship nevertheless occurs, it will often be associated with unwanted consequences. A dismantling of formal institutional checks and balances is therefore not reasonable.