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We study the determinants of people’s attitudes toward income inequality and their economic consequences. We argue that attitudes toward inequality depend on the extent of freedom of choice and control over life outcomes an individual enjoys. We construct a two-stage empirical model where...
Persistent link: https://www.econbiz.de/10010584481
We note some problems in Alesina and Angeletos (2005) and suggest a way to maintain the key insight of that paper, which is that a demand for fairness could lead to different economic systems such as those observed in France versus the US (multiple equilibria).
Persistent link: https://www.econbiz.de/10008765222
We provide an example that shows that in the Alesina and Angeletos (2005) model one can obtain multiplicity even if luck plays no role in the economy. Thus, it is not critical that the noise to signal ratio be increasing in taxes, or that desired taxes are increasing in the noise to signal ratio.
Persistent link: https://www.econbiz.de/10010897816
and benefits of redistribution through taxes, land reform or public schooling: such policies simultaneously depress …
Persistent link: https://www.econbiz.de/10005123982
Building on a theoretical model we test the hypothesis that effort choices and preferences for redistribution are … preferences for redistribution and effort choices simultaneously. While respondents with stronger preferences for redistribution … tend to have smaller incentives to engage in effort, the reverse does not hold true. Using a lab experiment, we show that …
Persistent link: https://www.econbiz.de/10010547897
under which some individuals that are poorer than the average optimally choose to oppose redistribution policies. The … provided the mobility process is concave in expectations, redistribution policies are expected to last for a sufficiently long … period and individuals are not too risk averse. This paper tests the POUM hypothesis by means of a within subjects experiment …
Persistent link: https://www.econbiz.de/10005822040
Building on a theoretical model we test the hypothesis that effort choices and preferences for redistribution are … preferences for redistribution and effort choices simultaneously. While respondents with stronger preferences for redistribution … tend to have smaller incentives to engage in effort, the reverse does not hold true. Using a lab experiment, we show that …
Persistent link: https://www.econbiz.de/10010762085
aversion to inequity is sufficiently strong, even individuals with high ability may support redistribution. In a lab experiment … significant negative effect predicted by standard theory. Also, in the field, those who have to pay for redistribution are not …In this paper, we analyze the link between effort and preferences for redistribution. If individ-uals hold standard …
Persistent link: https://www.econbiz.de/10010895278
Even people with income below average will not support high rates of redistribution, because of the prospect of upward …, where a relatively poor majority holds the political power, do not engage in large-scale expropriation and redistribution …
Persistent link: https://www.econbiz.de/10005168644
support high level of redistribution because they hope to be rich in the future). We consider a setting where individuals … gender. We find that the POUM effect could increase or decrease the support for redistribution depending on the parameters of …
Persistent link: https://www.econbiz.de/10005432663