Understanding cross-cultural differences in peer reporting practices: evidence from tax evasion games in Moldova and France
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ROMANIUC, Rustam, DUBOIS, Dimitri, DIMANT, Eugen, LUPUŞOR, Adrian. Understanding cross-cultural differences in peer reporting practices: evidence from tax evasion games in Moldova and France. In: Public Choice, 2022, nr. 1-2(190), pp. 127-147. ISSN 0048-5829. DOI: https://doi.org/10.1007/s11127-021-00925-7
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Numărul 1-2(190) / 2022 / ISSN 0048-5829 /ISSNe 1573-7101

Understanding cross-cultural differences in peer reporting practices: evidence from tax evasion games in Moldova and France

DOI:https://doi.org/10.1007/s11127-021-00925-7

Pag. 127-147

Romaniuc Rustam1, Dubois Dimitri2, Dimant Eugen3, Lupuşor Adrian
 
1 Montpellier Business School, Montpellier,
2 University of Montpellier,
3 Pennsylvania State University
 
 
Disponibil în IBN: 4 martie 2022


Rezumat

Authorities rely on reports from private citizens to detect and enforce more than a trivial portion of effective law-breaking. The present article is the first to study the cultural aspect of peer reporting experimentally. By collecting data in a post-Soviet country (Moldova), we focus in particular on how the Soviet legacy of using citizens as private informants may have a long-lasting effect on their willingness to cooperate with state authorities. We then contrast those effects with peer reporting behavior in France, a Western society. Our results suggest that participants in Moldova view cooperation with authorities as less socially acceptable than their counterparts in France. Our results also suggest that participants in Moldova engage less frequently in peer reporting than individuals in France. However, we also find that less peer reporting does not necessarily imply less tax compliance. Participants in both countries exhibit very similar tax compliance rates. We explain the effect of peer reporting on tax compliance in Moldova using the country's past experience during the Soviet era, when being reported to authorities was common and carried grave consequences.

Cuvinte-cheie
Peer denunciation, Private and public enforcement, Soviet legacy, tax evasion