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The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria
The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria
Wolfgang Frimmel, Martin Halla and Jörg Paetzold
Wolfgang Frimmel, Martin Halla and Jörg Paetzold
Does tax evasion run in the family? To answer this question, we study the case of the commuter tax allowance in Austria. This allowance is designed as a step function of the distance between the residence and the workplace, creating sharp discontinuities at each bracket threshold. It turns out that the distance to the next higher bracket is a strong determinant of compliance. The match of different administrative data sources allows us to observe actual compliance behavior with little error at the individual level across two generations. To identify the intergenerational causal effect in tax evasion behavior, we use the paternal distance to next higher bracket as an instrumental variable for paternal compliance. We find that paternal non-compliance increases children’s non-compliance by about 23 percent.
In: Journal of the European Economic Association, 2019, Vol. 17(6).
The Intergenerational Persistence of Opioid Dependence: Evidence from Administrative Data
The Intergenerational Persistence of Opioid Dependence: Evidence from Administrative Data
with Alexander Ahammer
with Alexander Ahammer
To address the opioid crisis, it is crucial to understand its origins. We provide descriptive evidence for the intergenerational persistence of opioid dependence. Our analysis is based on administrative data covering the universe of Upper Austrian births from 1984 to 1990. We consider prescription opioids and a new proxy for addiction to illicit opioids. We find that, if at least one parent is using illicit opioids, the likelihood of the child using increases from 1 to 7%. For prescription opioids, we observe an increase from 3.6 to 6.7%. Both associations are stable and do not change when controlling for environmental variables.
In: Health Economics, 2022, Vol. 31 (11), 2425-2444.
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