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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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Autor principal: Ait Bihi Ouali, Laila
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2020
Materias:
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
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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.
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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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