The importance of the future when deciding levels of personal responsibility and demand for redistribution

Sergio Beraldo, Massimiliano Piacenza and Gilberto Turati ()

Economic Modelling, 2022, vol. 116, issue C

Abstract: We experimentally investigate the link between individuals' value on future incomes and their support for redistributive policies today. The investigation identifies time preferences as a key driver of redistributive policies via their effect on personal responsibility, defined as costly but productive effort. The investigation also accounts for the strategic interplay between individuals in the choice of effort, identifying two key strategies: either exercise more effort and ask for less redistribution or free ride on others’ efforts, asking for more redistribution. We find that individuals oriented toward the future tend to invest more and ask for less redistribution. We discuss the policy implications of this result.

Keywords: Income redistribution; Proportional income tax; Personal responsibility; Intertemporal preferences (search for similar items in EconPapers)
JEL-codes: C91 D31 D91 H24 H30 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:116:y:2022:i:c:s0264999322002280

DOI: 10.1016/j.econmod.2022.105982

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