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Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers
This paper provides empirical evidence that individuals substantially revise their stated wealth redistribution preferences after fiscal scandals. The 2016 Panama Papers scandal revealed top-income tax evasion behaviour simultaneously worldwide. The empirical investigation exploits this event as a q...
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Formato: | Online Artículo Texto |
Lenguaje: | English |
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Public Library of Science
2020
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Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7064205/ https://www.ncbi.nlm.nih.gov/pubmed/32155170 http://dx.doi.org/10.1371/journal.pone.0229394 |
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author | Ait Bihi Ouali, Laila |
author_facet | Ait Bihi Ouali, Laila |
author_sort | Ait Bihi Ouali, Laila |
collection | PubMed |
description | This paper provides empirical evidence that individuals substantially revise their stated wealth redistribution preferences after fiscal scandals. The 2016 Panama Papers scandal revealed top-income tax evasion behaviour simultaneously worldwide. The empirical investigation exploits this event as a quasi-natural experiment. I rely on two original datasets, a UK household longitudinal dataset and a survey conducted in 22 European countries. I use a difference-in-differences strategy and find that pro-redistribution statements increased between 2% and 3.3% after the scandal. Responses are heterogeneous and larger for right-wing individuals and low-income individuals. This change in wealth redistribution preferences is likely to have been translated into a slight change in votes. The results suggest an increase in stated voting intentions for the left and a decrease for the right. Complementary estimations reveal that more media coverage and more individuals involved by country increase the magnitude of the response. |
format | Online Article Text |
id | pubmed-7064205 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-70642052020-03-23 Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers Ait Bihi Ouali, Laila PLoS One Research Article This paper provides empirical evidence that individuals substantially revise their stated wealth redistribution preferences after fiscal scandals. The 2016 Panama Papers scandal revealed top-income tax evasion behaviour simultaneously worldwide. The empirical investigation exploits this event as a quasi-natural experiment. I rely on two original datasets, a UK household longitudinal dataset and a survey conducted in 22 European countries. I use a difference-in-differences strategy and find that pro-redistribution statements increased between 2% and 3.3% after the scandal. Responses are heterogeneous and larger for right-wing individuals and low-income individuals. This change in wealth redistribution preferences is likely to have been translated into a slight change in votes. The results suggest an increase in stated voting intentions for the left and a decrease for the right. Complementary estimations reveal that more media coverage and more individuals involved by country increase the magnitude of the response. Public Library of Science 2020-03-10 /pmc/articles/PMC7064205/ /pubmed/32155170 http://dx.doi.org/10.1371/journal.pone.0229394 Text en © 2020 Laila Ait Bihi Ouali http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Ait Bihi Ouali, Laila Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title | Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title_full | Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title_fullStr | Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title_full_unstemmed | Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title_short | Effects of signalling tax evasion on redistribution and voting preferences: Evidence from the Panama Papers |
title_sort | effects of signalling tax evasion on redistribution and voting preferences: evidence from the panama papers |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7064205/ https://www.ncbi.nlm.nih.gov/pubmed/32155170 http://dx.doi.org/10.1371/journal.pone.0229394 |
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