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Wealth distribution and redistributive preferences: Evidence from a randomized survey experiment

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Listed:
  • Albacete, Nicolás
  • Fessler, Pirmin
  • Lindner, Peter

Abstract

We analyze a large-scale experiment on redistributive preferences using data from the Austrian segment of the Eurosystem Household Finance and Consumption Survey. Austria, characterized by low wealth taxation but high wealth inequality, provides an ideal context. We estimate the causal effect of information about one’s wealth rank on preferences for wealth taxation. While the average treatment effect is statistically insignificant, individuals who overestimate their wealth position exhibit a positive response, whereas those who underestimate it show a negative response. The impact of information varies based on prior beliefs, yet the overall effect remains null.

Suggested Citation

  • Albacete, Nicolás & Fessler, Pirmin & Lindner, Peter, 2025. "Wealth distribution and redistributive preferences: Evidence from a randomized survey experiment," European Journal of Political Economy, Elsevier, vol. 90(PB).
    • Handle: RePEc:eee:poleco:v:90:y:2025:i:pb:s0176268025001016
    DOI: 10.1016/j.ejpoleco.2025.102741
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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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