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A Little Fairness may Induce a Lot of Redistribution in Democracy

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Author Info
Jean-Robert Tyran ()
Rupert Sausgruber ()

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Abstract

We use a model of self-centered inequality aversion suggested by Fehr and Schmidt (1999) to study voting on redistribution. We theoretically identify two classes of conditions when an empirically plausible amount of fairness preferences induces redistribution through referenda. We test the predictions of the adapted inequality aversion model in a simple redistribution experiment, and find that it predicts voting outcomes far better than the standard model of voting assuming rationality and strict self-interest.

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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2002 with number 2002-30.

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Length: 38 pages
Date of creation: Dec 2002
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Handle: RePEc:usg:dp2002:2002-30

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Related research
Keywords: Fairness; Voting; Redistribution;

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

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References listed on IDEAS
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.:
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(explanations, 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.)

  1. Rupert Sausgruber & Jean-Robert Tyran, 2005. "Testing the Mill hypothesis of fiscal illusion," Public Choice, Springer, vol. 122(1), pages 39-68, January. [Downloadable!] (restricted)
    Other versions:
  2. Traxler, Christian, 2006. "Voting over Taxes: The Case of Tax Evasion," Discussion Papers in Economics 1188, University of Munich, Department of Economics. [Downloadable!]
    Other versions:
  3. Sanjit Dhami & Ali al-Nowaihi, 2008. "Social Preferences and Redistribution Under Direct Democracy," Discussion Papers in Economics 08/11, Department of Economics, University of Leicester. [Downloadable!]
  4. Werner Gueth & Rupert Sausgruber, 2004. "Tax Morale and Optimal Taxation," Papers on Strategic Interaction 2004-12, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
    Other versions:
  5. Andreas Schäfer & Thomas Steger, 2007. "Macroeconomic Consequences of Distributional Conflicts," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  6. Sanjit Dhami & Ali al-Nowaihi, 2007. "Existence of a Condorcet winner when voters have other-regarding preferences," Discussion Papers in Economics 07/16, Department of Economics, University of Leicester, revised Jun 2008. [Downloadable!]
  7. Sanjit Dhami & Ali al-Nowaihi, 2006. "Fairness and Direct Democracy," Discussion Papers in Economics 06/11, Department of Economics, University of Leicester, revised Nov 2007. [Downloadable!]
  8. Antonio Cabrales & Rosemarie Nagel & Jose V. Rodr?guez Mora, 2007. "It is Hobbes, not Rousseau: An Experiment on Social Insurance," Labsi Experimental Economics Laboratory University of Siena 019, University of Siena. [Downloadable!]
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  9. John Creedy & Solmaz Moslehi, 2007. "Modelling the Composition of Government Expenditure in Democracies," Department of Economics - Working Papers Series 1007, The University of Melbourne. [Downloadable!]
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  10. Benedikt Herrmann & Henrik Orzen, 2008. "The appearance of homo rivalis: Social preferences and the nature of rent seeking," Discussion Papers 2008-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
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