The trade-off between welfare and equality in a public good experiment
AbstractWe report the results of an experiment on voluntary contributions to a public good in which we implement a redistribution of the group endowment among group members in a lump sum manner. We study the impact of redistribution on group contribution, on individuals’ contribu- tions according to their endowment and on welfare. Our experimental results show that welfare increases when equality is broken, as predicted by theory (Itaya, De Meza & Myles, 1997), because the larger contribution of the rich subjects overcompensates the lower contribution of the poor subjects. Last but not least, agents’ behavior in situations of inequality of income, depends on initial conditions. In particular, the decisions of those who become poor seem to express a form of protest against the new distribution of incomes compared to those who started out as poor: from a behavioral point of view, being poor is therefore not equivalent to becoming poor.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 13-03.
Length: 26 pages
Date of creation: Feb 2013
Date of revision: Feb 2013
Contact details of provider:
Postal: Avenue Raymond Dugrand, CS 79606, 34960 Montpellier Cedex 2
Web page: http://www.lameta.univ-montp1.fr/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth S. Chan & Stuart Mestelman & R. Andrew Muller, 1998.
"Voluntary Provision of Public Goods,"
McMaster Experimental Economics Laboratory Publications
1998-02, McMaster University.
- Ruben Durante & Louis Putterman, 2007.
"Preferences For Redistribution and Perception of Fairness: An Experimental Study,"
2007-13, Brown University, Department of Economics.
- Louis Putterman & Ruben Durante, 2009. "Preferences for Redistribution and Perception of Fairness: An Experimental Study," Sciences Po publications info:hdl:2441/eu4vqp9ompq, Sciences Po.
- Ruben Durante & Louis Putterman & Joël van der Weele, 2013. "Preferences for Redistribution and Perception of Fairness: An Experimental Study," Working Papers 2013-7, Brown University, Department of Economics.
- Juergen Bracht & Charles Figuières & Marisa Ratto, 2004.
"Relative performance of two simple incentive mechanisms in a public good experiment,"
IDEP Working Papers
0409, Institut d'economie publique (IDEP), Marseille, France.
- Bracht, Juergen & Figuieres, Charles & Ratto, Marisa, 2008. "Relative performance of two simple incentive mechanisms in a public goods experiment," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 54-90, February.
- Juergen Bracht & Charles Figuieres & Marisa Ratto, 2004. "Relative performance of two simple incentive mechanisms in a public good experiment," The Centre for Market and Public Organisation 04/102, Department of Economics, University of Bristol, UK.
- Bullock, David S, 1995. "Are Government Transfers Efficient? An Alternative Test of the Efficient Redistribution Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1236-74, December.
- Brunner, Eric J, 1997. " An Empirical Test of Neutrality and the Crowding-Out Hypothesis," Public Choice, Springer, vol. 92(3-4), pages 261-79, September.
- James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
- Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
- Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008.
"Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis,"
77, Economic Research Southern Africa.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2007. "Income Inequality, Reciprocity And Public Good Provision: An Experimental Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 75(3), pages 508-520, 09.
- Andre Hofmeyr & Justine Burns & Martine Visser, 2008. "Income Inequality, Reciprocity and Public Good Provision: An Experimental Analysis," SALDRU Working Papers 23, Southern Africa Labour and Development Research Unit, University of Cape Town.
- Piketty Thomas, 1993. "Implementation of First-Best Allocations via Generalized Tax Schedules," Journal of Economic Theory, Elsevier, vol. 61(1), pages 23-41, October.
- Anderson, Lisa R. & Mellor, Jennifer M. & Milyo, Jeffrey, 2008.
"Inequality and public good provision: An experimental analysis,"
The Journal of Socio-Economics,
Elsevier, vol. 37(3), pages 1010-1028, June.
- Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2004. "Inequality and Public Good Provision: An Experimental Analysis," Working Papers 12, Department of Economics, College of William and Mary.
- Todd L. Cherry & Stephan Kroll & Jason F. Shogren, 2003.
"The Impact of Endowment Heterogeneity and Origin on Public Good Contributions: Evidence from the Lab,"
03-05, Department of Economics, Appalachian State University.
- Cherry, Todd L. & Kroll, Stephan & Shogren, Jason F., 2005. "The impact of endowment heterogeneity and origin on public good contributions: evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 357-365, July.
- Atkinson, A. B. & Stiglitz, J. E., 1976. "The design of tax structure: Direct versus indirect taxation," Journal of Public Economics, Elsevier, vol. 6(1-2), pages 55-75.
- Jonathan Maurice & Marc Willinger & Agathe Rouaix, 2009.
"Income Redistribution and Public Good Provision: an Experiment,"
09-12, LAMETA, Universtiy of Montpellier, revised Jun 2011.
- Jonathan Maurice & Agathe Rouaix & Marc Willinger, 2013. "Income Redistribution And Public Good Provision: An Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 957-975, 08.
- Bracht, Juergen & Figuières, Charles & Ratto, Marisa, 2008. "Relative performance of two simple incentive mechanisms in a public goods experiment," Economics Papers from University Paris Dauphine 123456789/4809, Paris Dauphine University.
- Itaya, Jun-ichi & de Meza, David & Myles, Gareth D., 1997. "In praise of inequality: public good provision and income distribution," Economics Letters, Elsevier, vol. 57(3), pages 289-296, December.
- Ken Yamada & Hisahiro Naito, 2004. "An empirical examination of household public goods provision," Econometric Society 2004 North American Summer Meetings 474, Econometric Society.
- Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 351-66, April.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Werner Güth & Kerstin Pull & Manfred Stadler & Agnes Stribeck, 2010. "Equity versus Efficiency? - Evidence from Three-Person Generosity Experiments -," Jena Economic Research Papers 2010-018, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Keser, Claudia, 1996. "Voluntary contributions to a public good when partial contribution is a dominant strategy," Economics Letters, Elsevier, vol. 50(3), pages 359-366, March.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Nikolaos Georgantzís & Antonios Proestakis, 2011. "Accounting for real wealth in heterogeneous-endowment public good games," ThE Papers 10/20, Department of Economic Theory and Economic History of the University of Granada..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Modat).
If references are entirely missing, you can add them using this form.