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Inequality reduction and cooperation: Injection of additional resources

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  • Ramalingam, Abhijit
  • Stoddard, Brock V.

Abstract

We experimentally examine if reductions in inequality that do not lower the endowments of the rich raise contributions to public goods in formerly unequal groups. Even injections of additional resources directed to the poor fail to raise cooperation to levels observed in groups that were always equal and have fewer resources. Our results suggest that the poor mimic the unchanging selfish behaviour of the rich, and divert resources to private consumption.

Suggested Citation

  • Ramalingam, Abhijit & Stoddard, Brock V., 2024. "Inequality reduction and cooperation: Injection of additional resources," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001502
    DOI: 10.1016/j.econlet.2024.111667
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    References listed on IDEAS

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    1. Martinangeli, Andrea F.M., 2021. "Do what (you think) the rich will do: Inequality and belief heterogeneity in public good provision," Journal of Economic Psychology, Elsevier, vol. 83(C).
    2. Hargreaves Heap, Shaun P. & Ramalingam, Abhijit & Stoddard, Brock V., 2016. "Endowment inequality in public goods games: A re-examination," Economics Letters, Elsevier, vol. 146(C), pages 4-7.
    3. Ramalingam, Abhijit & Stoddard, Brock V., 2024. "Does reducing inequality increase cooperation?," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 170-183.
    4. Cherry, Todd L. & Kroll, Stephan & Shogren, Jason F., 2005. "The impact of endowment heterogeneity and origin on public good contributions: evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 357-365, July.
    5. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    6. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inequality reduction; Income transfers; Injection of resources; Cooperation; Public goods; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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