New Publication in the Journal of Economic Behavior & Organization
The new paper by Ingar Haaland and Andreas Olden studies economic relief programs and reduced auditing activities in tax administrations in the light of the COVID-19 pandemic.
Using a probability-based sample of the Norwegian population, we test whether an informational treatment about fewer audits by the Norwegian Tax Administration during the peak of the COVID-19 crisis affects support for an economic relief program designed to save jobs and prevent bankruptcies. The information treatment significantly reduces support for the economic relief program. The underlying mechanisms are lower trust in the tax administration’s handling of the program and more pessimism about its ability to detect fraud.