Title

What drives entrepreneurs underground? The role of tax morale

Authors

Aziz N. Berdiev, Bryant UniversityFollow
James W. Saunoris, Eastern Michigan University

Document Type

Article

Keywords

tax morale; informal entrepreneurship

Identifier Data

https://doi.org/10.1080/13504851.2018.1497847

Publisher

Taylor & Francis Online

Publication Source

Applied Economics Letters, 26(10)

Abstract

Using novel cross-country data, we examine whether and to what extent tax morale impacts informal entrepreneurship. Employing instrumental variables strategy, we find that countries with higher tax morale enjoy lower informal entrepreneurship.