IDEAS home Printed from https://ideas.repec.org/a/spr/eaiere/v16y2019i2d10.1007_s40844-019-00139-z.html
   My bibliography  Save this article

How does a liberalizing market influence a synergy between redistribution preference and social preferences in Asian socio-economies?

Author

Listed:
  • Hironori Tohyama

    (Shizuoka University)

Abstract

Asian people may demand more social welfare or greater redistributive expenditure because they are currently faced with problems of growing economic inequality and a state of social development that is lagging far behind its state of economic development. However, they do not seem to be in favor of demanding more welfare expenditure. This paper investigates how individual attitudes toward redistribution are shaped by focusing on institutional dependency and social preference to address this paradoxical issue. First, we show that social preferences are more relevant to redistribution preference than self-interested motives in Asian socio-economies. We also argue that a synergy between trustworthy individuals and a social preference space could work, leading to a stronger preference for redistribution. However, for the second, we show that the degree to which redistribution preference is associated with social preferences could be lowered as the market space is liberalized: in other words, a social preference space contracts. As a result, we cannot expect a synergy between a social preference space and trustworthy individuals to work, leading to a paradoxical situation, i.e., Asian people refrain from demanding that the government should undertake more redistributive expenditure despite their exacerbating income inequality, caused by the expansion of a liberal type of market space.

Suggested Citation

  • Hironori Tohyama, 2019. "How does a liberalizing market influence a synergy between redistribution preference and social preferences in Asian socio-economies?," Evolutionary and Institutional Economics Review, Springer, vol. 16(2), pages 455-477, December.
  • Handle: RePEc:spr:eaiere:v:16:y:2019:i:2:d:10.1007_s40844-019-00139-z
    DOI: 10.1007/s40844-019-00139-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40844-019-00139-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s40844-019-00139-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph Henrich, 2001. "In Search of Homo Economicus: Behavioral Experiments in 15 Small-Scale Societies," American Economic Review, American Economic Association, vol. 91(2), pages 73-78, May.
    2. Schechter, Laura, 2007. "Traditional trust measurement and the risk confound: An experiment in rural Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 272-292, February.
    3. Ernst Fehr, 2009. "On The Economics and Biology of Trust," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 235-266, 04-05.
    4. Christina M. Fong & Samuel Bowles & Herbert Gintis, 2005. "Behavioural Motives for Income Redistribution," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(3), pages 285-297, September.
    5. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    6. Armin Falk & Anke Becker & Thomas Dohmen & Benjamin Enke & David B. Huffman & Uwe Sunde, 2017. "Global Evidence on Economic Preferences," NBER Working Papers 23943, National Bureau of Economic Research, Inc.
    7. Samuel Bowles & Robert Boyd & Colin Camerer & Ernst Fehr & Herbert Gintis & Joseph Henrich & Richard McElreath, 2001. "In search of homo economicus: Experiments in 15 small-scale societies," Artefactual Field Experiments 00068, The Field Experiments Website.
    8. Armin Falk & Anke Becker & Thomas Dohmen & Benjamin Enke & David Huffman & Uwe Sunde, 2018. "Global Evidence on Economic Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(4), pages 1645-1692.
    9. Moene, Karl Ove & Wallerstein, Michael, 2001. "Inequality, Social Insurance, and Redistribution," American Political Science Review, Cambridge University Press, vol. 95(4), pages 859-874, December.
    10. Timothy J. Sturgeon & Momoko Kawakami, 2011. "Global value chains in the electronics industry: characteristics, crisis, and upgrading opportunities for firms from developing countries," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 4(1/2/3), pages 120-147.
    11. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    12. Chang, Alex Chuan-hsien, 2018. "How do Asian values constrain public support for redistribution?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 139-150.
    13. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    14. Ian Holliday, 2000. "Productivist Welfare Capitalism: Social Policy in East Asia," Political Studies, Political Studies Association, vol. 48(4), pages 706-723, September.
    15. Samuel Bowles & Sandra Polania-Reyes, 2012. "Economic Incentives and Social Preferences: Substitutes or Complements?," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 368-425, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09hacc56d41 is not listed on IDEAS
    2. Gilles Le Garrec, 2009. "Feeling guilty and redistributive politics," SciencePo Working papers Main hal-01066215, HAL.
    3. Gilles Le Garrec, 2009. "Feeling guilty and redistributive politics," Sciences Po publications 2009-22, Sciences Po.
    4. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09hacc56d41 is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09hacc56d41 is not listed on IDEAS
    6. Le Garrec, Gilles, 2013. "Guilt aversion and redistributive politics: A moral intuitionist approach," Economics Discussion Papers 2013-53, Kiel Institute for the World Economy (IfW Kiel).
    7. Eugen Dimant & Kyle Hyndman, 2019. "Becoming Friends or Foes? How Competitive Environments Shape Social Preferences," Discussion Papers 2019-18, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    8. Fehr, Dietmar & Rau, Hannes & Trautmann, Stefan T. & Xu, Yilong, 2020. "Inequality, fairness and social capital," European Economic Review, Elsevier, vol. 129(C).
    9. Matías Strehl Pessina, 2022. "Sectores de altos ingresos y preferencias por redistribución," Documentos de Trabajo (working papers) 22-15, Instituto de Economía - IECON.
    10. Algan, Yann & Cahuc, Pierre, 2014. "Trust, Growth, and Well-Being: New Evidence and Policy Implications," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 2, pages 49-120, Elsevier.
    11. Timilsina, Raja R. & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2022. "Intragenerational deliberation and intergenerational sustainability dilemma," European Journal of Political Economy, Elsevier, vol. 73(C).
    12. Felix Kölle & Simone Quercia & Egon Tripodi, 2023. "Social Preferences under the Shadow of the Future," Rationality and Competition Discussion Paper Series 406, CRC TRR 190 Rationality and Competition.
    13. Choi, Gwangeun, 2019. "Revisiting the redistribution hypothesis with perceived inequality and redistributive preferences," European Journal of Political Economy, Elsevier, vol. 58(C), pages 220-244.
    14. Ayoubi, Charles & Thurm, Boris, 2020. "Evolution and Heterogeneity of Social Preferences," OSF Preprints ucx8z, Center for Open Science.
    15. Michel Zouboulakis, 2010. "Trustworthiness as a Moral Determinant of Economic Activity: Lessons from the Classics," Forum for Social Economics, Taylor & Francis Journals, vol. 39(3), pages 209-221, January.
    16. Elvire Guillaud, 2013. "Preferences for redistribution: an empirical analysis over 33 countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 57-78, March.
    17. Kuhn, Andreas, 2011. "In the eye of the beholder: Subjective inequality measures and individuals' assessment of market justice," European Journal of Political Economy, Elsevier, vol. 27(4), pages 625-641.
    18. Malte Luebker, 2019. "Can the Structure of Inequality Explain Fiscal Redistribution? Revisiting the Social Affinity Hypothesis," LIS Working papers 762, LIS Cross-National Data Center in Luxembourg.
    19. Keefer, Philip & Scartascini, Carlos & Vlaicu, Razvan, 2022. "Demand-side determinants of public spending allocations: Voter trust, risk and time preferences," Journal of Public Economics, Elsevier, vol. 206(C).
    20. John Morrow & Michael Carter, 2013. "Left, Right, Left: Income, Learning and Political Dynamics," NBER Working Papers 19498, National Bureau of Economic Research, Inc.
    21. Rawadee Jarungrattanapong & Suparee Boonmanunt, 2020. "Collective action and other-regarding behavior: an assessment of games vs reality in Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 485-507, October.
    22. Martinsson, Peter & Medhin, Haileselassie & Persson, Emil, 2016. "Framing and Minimum Levels in Public Good Provision," Working Papers in Economics 656, University of Gothenburg, Department of Economics.
    23. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09iak4384sp is not listed on IDEAS
    24. Omar Al-Ubaydli & Daniel Houser & John Nye & Maria Pia Paganelli & Xiaofei Sophia Pan, 2013. "The Causal Effect of Market Priming on Trust: An Experimental Investigation Using Randomized Control," PLOS ONE, Public Library of Science, vol. 8(3), pages 1-8, March.

    More about this item

    Keywords

    Government expenditure and welfare programs; Comparative studies; Redistribution preference; Social preference; Institution; Asia;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eaiere:v:16:y:2019:i:2:d:10.1007_s40844-019-00139-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.