| By: |
Laila Ait Bihi Ouali (Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE) |
| Abstract: |
This paper provides empirical evidence that, after fiscal scandals,
individuals substantially revise their views on redistribution. I exploit as a
quasi-natural experiment the 2016 Panama Papers scandal which revealed
top-income tax evasion behaviour simultaneously worldwide. The empirical
investigation relies on two original sources of data: a longitudinal dataset
on United Kingdom households and a survey conducted in twenty-two European
countries. Using a difference-in-differences strategy, I find an increase in
pro-redistribution statements post-scandal ranging between 2% and 3.3%.
Responses are heterogeneous on income levels and on political affiliations,
with larger responses from right-wing individuals. The change in
redistribution preferences is moderately translated into votes: I find an
increase in voting intentions for the left and negative for the right-wing
parties. Complementary estimations at the European-level indicate that
pro-redistribution responses increase with media coverage and shock intensity
(i.e., number of individuals involved). |
| Keywords: |
Panama Papers, Tax evasion, tax avoidance, Redistribution, tax morale, Inequality, mass media |
| JEL: |
D63 H24 H26 |
| Date: |
2019–01 |
| URL: |
http://d.repec.org/n?u=RePEc:aim:wpaimx:1901&r=all |