Wayne Aaron Sandholtz
Nova SBE, CESifo, IZA, and NOVAFRICA
Pedro C. Vicente
Nova SBE, BREAD, CEPR, and NOVAFRICA
ISSN 2183-0843
Working Paper No 2404
Dezembro 2024
Resumo:
Tax revenue is vital for development, but governments must balance raising revenues with maintaining political support. Partnering with a city government in Mozambique, we experimentally vary the provision of information highlighting the role of municipal tax revenues in 1) local public good provision and 2) local political autonomy. We measure how this information affects property owners’ tax morale and political support for the government. Public goods information raises tax morale, especially in areas of low baseline public good provision, but has no effect on voting. The political message increases electoral support generally, but raises tax morale only among co-partisans. These results suggest that communication about the uses of public revenue offers a politically feasible way to increase tax morale.
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