Title Page
INTERNATIONAL MONETARY FUND
The State and Your Hard-Earned Money
A Survey on Moral Perspectives in Public Finance
Paolo Mauro
WP/21/287
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
2021
December
Copyright Page
© 2021 International Monetary Fund
WP/21/287
IMF Working Paper
Fiscal Affairs Department
The State and Your Hard-Earned Money: A Survey on Moral Perspectives in Public Finance
Prepared by Paolo Mauro*
December 2021
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: This note provides an overview of recent studies that have begun to investigate how differing moral perspectives shape attitudes toward tax and spending policies. Recent advances in evolutionary moral psychology and their application to survey-based economic analysis yield promising insights. Understanding the moral underpinnings of various groups’ views may help policymakers design and make the case for measures that can muster broader support.
| JEL Classification Numbers: | B1, H1 |
| Keywords: | Moral foundations, moral philosophy, public finance, redistribution, public debt, taxation, political economy, surveys |
| Author’s E-Mail Address: | PMauro@imf.org |
| JEL Classification Numbers: | B1, H1 |
| Keywords: | Moral foundations, moral philosophy, public finance, redistribution, public debt, taxation, political economy, surveys |
| Author’s E-Mail Address: | PMauro@imf.org |
Contents
Introduction
Moral Philosophy for Economists—A Concise Refresher
A Brief Overview of Moral Foundations Theory
Recent Work on the Increasing Relevance of Identity, Community
Surveying How Values Differ Across People, Communities, and Countries
Relevance of Moral Perspectives for Themes in Public Finance
Empirical Applications of Moral Foundations Theory to Economics
Public Debt as a Moral Issue
Designing and Presenting Fiscal Measures with Broader Appeal
The purity (or sanctity) foundation
The loyalty foundation
The authority foundation
The fairness/cheating foundation
The liberty/oppression foundation
Information and persuasion
A Final Caveat
Conclusion
References
FIGURES
1. Views on Government Redistribution as an Essential Characteristic of Democracy
I wish to thank, without implication, Vitor Gaspar, Mick Keen, and participants in a seminar in the Fiscal Affairs Department for insightful suggestions. The views expressed are those of the author and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
