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Reciprocity, Self-Interest and the Welfare State

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Author Info
Samuel Bowles
Herbert Gintis

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Abstract

In the advanced economies, a substantial fraction of total income is regularly transferred from the better off to the less well off, with the approval of the electorate. Economists have for the most part misunderstood this phenomenon due to their endorsement of an empirically implausible theory of selfish human motivation. Understanding why citizens regularly vote for parties endorsing redistributive policies requires a reconsideration of the behavioral assumptions of economics. We find that voters support the welfare state because it conforms to deeply held norms of reciprocity and conditional obligations to others.

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Article provided by Nordic Journal of Political Economy in its journal Nordic Journal of Political Economy.

Volume (Year): 26 (2000)
Issue (Month): ()
Pages: 33-53
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Handle: RePEc:noj:journl:v:26:y:2000:p:33-53

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Find related papers by JEL classification:
D30 - Microeconomics - - Distribution - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General

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  1. Lindbeck, Assar & Nyberg, Sten & Weibull, Jörgen W., 2002. "Social Norms and Welfare State Dynamics," Working Paper Series 585, Research Institute of Industrial Economics. [Downloadable!]
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  2. Urs Fischbacher & Simon Gaechter, 2006. "Heterogeneous social preferences and the dynamics of free riding in public goods," Discussion Papers 2006-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
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  3. Ernst Fehr & Klaus Schmidt, 2000. "Theories of Fairness and Reciprocity -- Evidence and Economic Applications," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  4. Erzo F.P. Luttmer, 1999. "Group Loyalty and the Taste for Redistribution," Working Papers 9902, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
    Other versions:
  5. Cappelen, Alexander W. & Tungodden, Bertil, 2004. "The liberal egalitarian paradox," Memorandum 14/2004, Oslo University, Department of Economics. [Downloadable!]
  6. Jo Thori Lind, 2003. "Fractionalization and the Size of Government," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  7. Christina M. Fong, 2003. "Emphatic Responsiveness: Evidence from a Randomized Experiment on Giving to Welfare Recipients," Framed Field Experiments 0026, The Field Experiments Website. [Downloadable!]
  8. Barth, Erling & Cappelen, Alexander W. & Ognedal, Tone, 2006. "Fair Tax Evasion," Memorandum 07/2006, Oslo University, Department of Economics. [Downloadable!]
  9. Ernst Fehr & Klaus M. Schmidt, 2005. "The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories," Discussion Papers 66, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
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