Effects of signalling tax evasion on redistribution and voting preferences: evidence from the panama papers
File(s)journal.pone.0229394.pdf (1.51 MB)
Published version
OA Location
Author(s)
Ait Bihi Ouali, Laila
Type
Journal Article
Abstract
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.
Date Issued
2020-03-10
Date Acceptance
2020-02-05
Citation
PLoS One, 2020, 15 (3), pp.1-22
ISSN
1932-6203
Publisher
Public Library of Science (PLoS)
Start Page
1
End Page
22
Journal / Book Title
PLoS One
Volume
15
Issue
3
Copyright Statement
© 2020 Laila Ait Bihi Ouali. 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.
Identifier
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0229394
Subjects
General Science & Technology
Date Publish Online
2020-03-10