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cc-by-nc-nd, (c) Durán Cabré et al., 2025
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/221036

Is the revealed price of democracy biased?

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We examine how information influences the marginal willingness to pay taxes (MWTPT) through a four-wave randomized survey experiment conducted during the COVID-19 pandemic. Specifically, we assess the impact of quantitative (data on the actual tax-to-GDP ratio) and qualitative (basic pros and cons of taxation) information on revealed MWTPT. The results show that qualitative information increases MWTPT, particularly among high-income individuals. In contrast, quantitative information only reduces MWTPT among high-income individuals who initially underestimated the aggregate tax burden. Hence, those who are potentially more affected by taxes are also more sensitive to the provision of information. These findings suggest that information can shape perceptions of the tax system and, consequently, influence individuals' willingness to contribute to public good provision. This has important implications for tax policy design and efforts to reduce political polarization. If these efforts are not properly implemented, the revealed price of democracy will remain biased.

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DURÁN CABRÉ, José maría, ESTELLER MORÉ, Alejandro, SECOMANDI, Riccardo. Is the revealed price of democracy biased?. _IEB Working Paper 2025/04_. [consulta: 24 de novembre de 2025]. [Disponible a: https://hdl.handle.net/2445/221036]

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