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Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

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  • Ilja Neustadt

    ()
    (Institute for Future Energy Consumer Needs and Behavior (FCN), RWTH Aachen University)

Abstract

Due to the mixed empirical evidence bearing on the economic determinants, beliefs have been at the center of attention of research into preferences for income redistribution. We elicit preferences for income redistribution through a Discrete Choice Experiment performed in 2008 in Switzerland and relate them to several behavioral determinants, in particular to religious beliefs. Estimated marginal willingness to pay (WTP) is positive among those who do not belong to a religious denomination, and negative otherwise. However, the marginal WTP is shown to increase with a higher degree of religiosity. Moreover, those who state that luck or connections play a crucial role in determining economic success exhibit significantly higher WTP values than those who deem e?ort to be decisive.

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File URL: http://www.soi.uzh.ch/research/wp/2010/wp1009.pdf
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Bibliographic Info

Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 1009.

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Length: 36 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:soz:wpaper:1009

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Keywords: Income redistribution; beliefs; religiosity; welfare state; preferences; willingness to pay; discrete choice experiments;

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Cited by:
  1. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
  2. Michele Sennhauser, 2009. "Why the Linear Utility Function is a Risky Choice in Discrete-Choice Experiments," SOI - Working Papers 1014, Socioeconomic Institute - University of Zurich.
  3. Peter Zweifel & Ilja Neustadt, 2013. "Why Does Income Redistribution Differ Between Countries? Comparative Evidence From Germany and Switzerland," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 11(3), pages 39-47, October.
  4. Fatica, Serena, 2011. "Preferences for redistribution, the size of government and the tax system," MPRA Paper 29782, University Library of Munich, Germany.

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