Aspirations of the middle class: Voting on redistribution and status concerns
AbstractThis paper analyzes the role of narrowly selfish and other-regarding preferences for the median voter in a Meltzer-Richard (1981) framework. We use computerized and real human co-players to distinguish between these sets of motivations. Redistribution to real co-players has a negative effect on the median voter's tax rate choice. Further, perceived income mobility decreases the desired amount of redistribution. Our results suggest the importance of concerns about own mobility as well as status concerns of the median voter who tends to keep distance to the low-income group, whereas inequity aversion does not play a role in the political economy context. --
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Bibliographic InfoPaper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" with number SP II 2011-102.
Date of creation: 2011
Date of revision:
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Redistribution; other-regarding preferences; median voter; experiments;
Other versions of this item:
- Kai A. Konrad & Florian Morath, 2011. "Aspirations of the middle class: voting on redistribution and status concerns," Working Papers aspirations_of_the_middle, Max Planck Institute for Tax Law and Public Finance.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- 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-2012-01-25 (All new papers)
- NEP-CDM-2012-01-25 (Collective Decision-Making)
- NEP-POL-2012-01-25 (Positive Political Economics)
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