Social Mobility and Redistributive Taxation
AbstractWe investigate redistributive taxation in a political economy experiment and determine how different patterns of social mobility affect the choices of redistributional taxes. In the absence of social mobility, voters choose tax rates that are very well in line with the prediction derived in the standard framework by Meitzer and Richard (1981). However, past or future changes in the income hierarchy affect the choice of the tax rate in the current period. The same is true for social mobility within the period to which the tax rate choice applies and for the case where the choice of the tax rate takes place behind, the veil of ignorance. Due to our design of the experiment, these strong effects of own social mobility cannot be attributed to social or other-regarding preferences.
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 Max Planck Institute for Tax Law and Public Finance in its series Working Papers with number social_mobility_and_redistributive_taxation.
Length: 46 pages
Date of creation: Jan 2011
Date of revision:
redistribution; median voter; social mobility;
Other versions of this item:
- Konrad, Kai A. & Morath, Florian, 2010. "Social mobility and redistributive taxation," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-15, Social Science Research Center Berlin (WZB).
- Konrad, Kai A. & Morath, Florian, 2010. "Social mobility and redistributive taxation," CEPR Discussion Papers 7997, C.E.P.R. Discussion Papers.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-EXP-2011-04-02 (Experimental Economics)
- NEP-PBE-2011-04-02 (Public Economics)
- NEP-PUB-2011-04-02 (Public Finance)
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.:
- Roland Bénabou & Efe A. Ok, 2001.
"Social Mobility And The Demand For Redistribution: The Poum Hypothesis,"
The Quarterly Journal of Economics,
MIT Press, vol. 116(2), pages 447-487, May.
- Bénabou, Roland & Ok, Efe A, 1998. "Social Mobility and the Demand for Redistribution: the POUM Hypothesis," CEPR Discussion Papers 1955, C.E.P.R. Discussion Papers.
- Roland Benabou & Efe A. Ok, 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," NBER Working Papers 6795, National Bureau of Economic Research, Inc.
- Benabou, R. & Ok, E.A., 1998. "Social Mobility and the Demand for Redistribution: The POUM Hypothesis," Working Papers 98-23, C.V. Starr Center for Applied Economics, New York University.
- Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
- Thomas Piketty, 1994.
"Social Mobility and Redistributive Politics,"
94-15, Massachusetts Institute of Technology (MIT), Department of Economics.
- Robert H. Frank, 1984. "Interdependent Preferences and the Competitive Wage Structure," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 510-520, Winter.
- Steffen Huck & Kai A. Konrad, 2005.
"Moral Cost, Commitment, and Committee Size,"
Journal of Institutional and Theoretical Economics (JITE),
Mohr Siebeck, Tübingen, vol. 161(4), pages 575-, December.
- Huck, Steffen & Konrad, Kai A., 2003. "Moral cost, commitment, and committee size," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-31, Social Science Research Center Berlin (WZB).
- Krawczyk, Michal, 2010. "A glimpse through the veil of ignorance: Equality of opportunity and support for redistribution," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 131-141, February.
- Varian, Hal R., 1980. "Redistributive taxation as social insurance," Journal of Public Economics, Elsevier, vol. 14(1), pages 49-68, August.
- Tyran, Jean-Robert & Sausgruber, Rupert, 2006.
"A little fairness may induce a lot of redistribution in democracy,"
European Economic Review,
Elsevier, vol. 50(2), pages 469-485, February.
- Jean-Robert Tyran & Rupert Sausgruber, 2002. "A Little Fairness may Induce a Lot of Redistribution in Democracy," University of St. Gallen Department of Economics working paper series 2002 2002-30, Department of Economics, University of St. Gallen.
- Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
- Ernst Fehr & Klaus M. Schmidt, .
"A Theory of Fairness, Competition and Cooperation,"
IEW - Working Papers
004, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
- 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, 2007. "Preferences For Redistribution and Perception of Fairness: An Experimental Study," Working Papers 2007-13, Brown University, Department of Economics.
- 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.
- Isaksson, Ann-Sofie & Lindskog, Annika, 2009. "Preferences for redistribution--A country comparison of fairness judgements," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 884-902, December.
- 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 914-27, October.
- Fershtman, C. & Murphy, K.M., 1993.
"Social Status, Education and Growth,"
8-93, Tel Aviv.
- Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-16, March.
- Hochman, Harold M & Rodgers, James D, 1969. "Pareto Optimal Redistribution," American Economic Review, American Economic Association, vol. 59(4), pages 542-57, Part I Se.
- Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
- Per Krusell & Jose-Victor Rios-Rull, 1997.
"On the size of U.S. government: political economy in the neoclassical growth model,"
234, Federal Reserve Bank of Minneapolis.
- Jose-Victor Rios-Rull & Per Krusell, 1999. "On the Size of U.S. Government: Political Economy in the Neoclassical Growth Model," American Economic Review, American Economic Association, vol. 89(5), pages 1156-1181, December.
- Glazer, Amihai & Konrad, Kai A, 1996. "A Signaling Explanation for Charity," American Economic Review, American Economic Association, vol. 86(4), pages 1019-28, September.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Barnett, Richard & Bhattacharya, Joydeep & Bunzel, Helle, 2012. "Voting for immiserizing income redistribution in the Meltzer-Richard model," School of Economics Working Paper Series 2012-15, LeBow College of Business, Drexel University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hans Mueller).
If references are entirely missing, you can add them using this form.