Strategic Choices for Redistribution and the Veil of Ignorance: Theory and Experimental Evidence
AbstractWe provide experimental evidence on the emergence of redistributive societies. Individuals first vote on redistribution by feet and then learn their productivity and invest. We vary the individuals’ information about their productivities at the time when they choose a distribution rule and find that there is more redistribution behind a veil of ignorance than under full information. However, the scope of redistribution is less sensitive towards the degree of uncertainty than predicted. For all degrees of uncertainty, we find a coexistence of libertarianism and redistribution as well as incomplete sorting, so that heterogeneous redistribution communities turn out to be sustainable.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4423.
Date of creation: 2013
Date of revision:
constitutional choice; experimental economics; redistribution; veil of ignorance; voting by feet;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
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