José María Durán-Cabré, Alejandro Esteller-Moré, Leonzio Rizzo, Riccardo Secomandi
2023/08: Has Covid vaccination success increased our marginal willingness to pay taxes?
The Covid-19 vaccination campaign can be regarded as a public-sector success story. Given the shock caused by the pandemic, the visible and successful response of the public authorities regarding vaccination might have elicited an increase in the public’s trust. The present paper tests whether the vaccination process has increased the marginal willingness to pay taxes (MWTP) and, if so, whether the impact is likely to endure. Taking advantage of the different paths of vaccination in Spain (starting with more vulnerable groups), we pursue a difference-in-difference empirical strategy, complemented by an event study, to infer causality running from vaccination to MWTP. While we find an increase in MWTP at the moment of vaccination, the impact vanishes shortly afterwards. Hence, good governance related to vaccination caused only euphoria (i.e. a spike in trust) with a consequent temporary increase in MWTP, but no more than that.