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Income Redistribution and Public Good Provision: An Experiment

Jonathan Maurice (), Agathe Rouaix () and Marc Willinger ()
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Agathe Rouaix: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: We experimentally investigate the impact of income redistribution on voluntary contributions by groups of four subjects. We compare equalizing and unequalizing redistribution. Our data are consistent with the neutrality theorem: Redistribution does not affect the amount of voluntarily provided public good at the group level. However, at the individual level, subjects tend to underadjust with respect to the Nash prediction. We also observe an insignificant adjustment asymmetry between the poor and the rich: Subjects who become poorer adjust their contribution by a larger absolute amount than subjects who become richer. Finally, poor subjects tend to overcontribute significantly more than rich subjects.

Keywords: Redistribution; Voluntary Provision; Public Good; Inequality; Social Dilemma (search for similar items in EconPapers)
Date: 2013-07-17
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00859478
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Published in International Economic Review, Wiley, 2013, 54 (3), pp.957-975. ⟨10.1111/iere.12024⟩

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Related works:
Journal Article: INCOME REDISTRIBUTION AND PUBLIC GOOD PROVISION: AN EXPERIMENT (2013) Downloads
Working Paper: Income redistribution and public good provision: an experiment (2013)
Working Paper: Income Redistribution and Public Good Provision: an Experiment (2011) Downloads
Working Paper: Income Redistribution and Public Good Provision: An Experiment (2009)
Working Paper: Income Redistribution and Public Good Provision: An Experiment (2009)
Working Paper: Income Redistribution and Public Good Provision: An Experiment (2009)
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