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Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

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  • Ilja Neustadt

Abstract

Due to the mixed empirical evidence bearing on the economic determinants, beliefs have been at the centre of attention of research into preferences for income redistribution. We elicit preferences for income redistribution through a Discrete Choice Experiment performed in 2008 in Switzerland and relate them to several behavioural determinants, in particular to religious beliefs. Estimated marginal willingness to pay (WTP) is positive among those who do not belong to a religious denomination, and negative otherwise. However, the marginal WTP is shown to increase with a higher degree of religiosity. Moreover, those who state that luck or connections play a crucial role in determining economic success exhibit significantly higher WTP values than those who deem effort to be decisive. (JEL codes: C35, C93, D63, H29) Copyright The Author 2011. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/cesifo/ifr002
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Bibliographic Info

Article provided by CESifo in its journal CESifo Economic Studies.

Volume (Year): 57 (2011)
Issue (Month): 4 (December)
Pages: 623-652

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Handle: RePEc:oup:cesifo:v:57:y:2011:i:4:p:623-652

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Cited by:
  1. Michele Sennhauser, 2009. "Why the Linear Utility Function is a Risky Choice in Discrete-Choice Experiments," SOI - Working Papers 1014, Socioeconomic Institute - University of Zurich.
  2. Fatica, Serena, 2011. "Preferences for redistribution, the size of government and the tax system," MPRA Paper 29782, University Library of Munich, Germany.
  3. Peter Zweifel & Ilja Neustadt, 2013. "Why Does Income Redistribution Differ Between Countries? Comparative Evidence From Germany and Switzerland," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 11(3), pages 39-47, October.
  4. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.

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