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October 5, 2025Journal of Public Affairs

Tax Evasion: The Interplay of Happiness and Public Governance in Europe and OECD Nations

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Authors

AYAhmed YamenMBMohamed A. K. BasuonyNNNeveen Noureldin

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Overview

This analysis reveals tax evasion decreases with happiness in low public governance settings, highlighting governance's role.

Key Points

  • A significant negative relationship exists between happiness and tax evasion in 36 countries studied.
  • Happiness affects tax evasion significantly in countries with low public governance but not in high governance countries.
  • The research spans European and OECD nations and covers data from 2005 to 2022.
  • Improving public governance may enhance tax compliance by addressing psychological factors like happiness.

Cite This Study

Yamen et al. (2025) studied this question.

synapsesocial.com/papers/68e24e65d6d66a53c24736fchttps://doi.org/10.1002/pa.70083
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