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.
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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)
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