Explain the impact more respectful procedures
1.Answer the following questions based on your reading of the article by Feld and Frey on the effects of tax morale on tax evasion in Switzerland.
Explain how the variable called “Respectful Procedure” is constructed from the authors’ survey responses. (What values can the variable take on? Does a bigger number mean more or less respectful treatment?) (1 mark)
Does the coefficient on the fine rate correspond to the rational choice theory?
Does the sign of the audit rate correspond to the theory?
