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The role of ignorance in the emergence of redistribution

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  • Gerber, Anke
  • Nicklisch, Andreas
  • Voigt, Stefan

Abstract

Our study investigates the emergence of redistribution societies when individuals vote on distribution rules with their feet. The choice of a distribution rule is a strategic decision since individuals differ in the productivity of their investments and hence total income depends on the types of individuals who have chosen the same distribution rule. In our laboratory experiment, we find that, compared to full information, the amount of redistribution increases if individuals face uncertainty about their productivity at the time they choose a distribution rule. Moreover, we find a coexistence of libertarian and redistributive societies as well as imperfect segregation for all degrees of uncertainty, so that heterogeneous redistribution societies turn out to be sustainable throughout.

Suggested Citation

  • Gerber, Anke & Nicklisch, Andreas & Voigt, Stefan, 2019. "The role of ignorance in the emergence of redistribution," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 239-261.
    • Handle: RePEc:eee:jeborg:v:163:y:2019:i:c:p:239-261
    DOI: 10.1016/j.jebo.2019.04.021
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    2. Romain Espinosa & Bruno Deffains & Christian Thöni, 2020. "Debiasing preferences over redistribution: an experiment," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 823-843, December.
    3. Joshua Chen-Yuan Teng & Joseph Tao-yi Wang & C. C. Yang, 2020. "Justice, what money can buy: a lab experiment on primary social goods and the Rawlsian difference principle," Constitutional Political Economy, Springer, vol. 31(1), pages 45-69, March.

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    More about this item

    Keywords

    Constitutional choice; Experimental economics; Partial ignorance; Redistribution; Voting by feet;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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