Preferences for Redistribution and Perception of Fairness: An Experimental Study

Ruben Durante, Louis Putterman and JoÃŽl van der Weele

No 2013-7, Working Papers from Brown University, Department of Economics

Abstract: We conduct a laboratory experiment to study how demand for redistribution of income depends on self-interest, insurance motives, and social concerns relating to inequality and efficiency. Our choice environments feature large groups of subjects and real world framing, and differ with respect to the source of inequality (earned or arbitrary), the cost of taxation to the decision maker, the dead-weight loss of taxation, uncertainty about own pre-tax income, and whether the decisionmaker is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with the potential to inform modeling in macroeconomics and political economy.

Keywords: income distribution; political economy; redistribution; social preferences. (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp, nep-ltv, nep-pbe and nep-pol
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Citations: View citations in EconPapers (8)

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Related works:
Journal Article: PREFERENCES FOR REDISTRIBUTION AND PERCEPTION OF FAIRNESS: AN EXPERIMENTAL STUDY (2014)
Working Paper: Preferences for Redistribution and Perception of Fairness: an Experimental Study (2014)
Working Paper: Preferences for Redistribution and Perception of Fairness: an Experimental Study (2014)
Working Paper: Preferences for Redistribution and Perception of Fairness: An Experimental Study (2009)
Working Paper: Preferences For Redistribution and Perception of Fairness: An Experimental Study (2007)
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