Economic Dynamics and Distributive Choices

Fabrice Le Lec (), Valentine Schmitz Geldhof and Rémi Suchon

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Abstract: This study investigates how economic dynamics influences distributive choices. In the first part of our experiment, an initial surplus is shared unequally between participants, based on the outcome of a real-effort task. In the second part, participants make redistribution decisions involving a new surplus that may be smaller (degrowth treatment), larger (growth treatment), or equal to the surplus of the first part. The results show that the 'rich' (those who received a high share in the first part) are not affected by the dynamics of the surplus, while the 'poor' demand more when the surplus decreases.>These findings highlight the role of economic dynamics in shaping distributive tensions, particularly under conditions of inequality.

Keywords: Inequality; distributional preferences; distributive conflicts; reference-dependent preferences (search for similar items in EconPapers)
Date: 2025-11-28
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