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Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

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  • Ilja Neustadt

Abstract

Due to the mixed empirical evidence bearing on the economic determinants, beliefs have been at the centre of attention of research into preferences for income redistribution. We elicit preferences for income redistribution through a Discrete Choice Experiment performed in 2008 in Switzerland and relate them to several behavioural determinants, in particular to religious beliefs. Estimated marginal willingness to pay (WTP) is positive among those who do not belong to a religious denomination, and negative otherwise. However, the marginal WTP is shown to increase with a higher degree of religiosity. Moreover, those who state that luck or connections play a crucial role in determining economic success exhibit significantly higher WTP values than those who deem effort to be decisive. (JEL codes: C35, C93, D63, H29) Copyright The Author 2011. Published by Oxford University Press on behalf of Ifo Institute for Economic Research, Munich. All rights reserved. For permissions, please email: journals.permissions@oup.com, Oxford University Press.

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  • Ilja Neustadt, 2011. "Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence," CESifo Economic Studies, CESifo Group, vol. 57(4), pages 623-652, December.
    • Handle: RePEc:oup:cesifo:v:57:y:2011:i:4:p:623-652
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    1. Gian Maria Milesi-Ferretti & Roberto Perotti & Massimo Rostagno, 2002. "Electoral Systems and Public Spending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 609-657.
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    Cited by:

    1. Zhou Xun, 2015. "Preference for Redistribution and Inequality Perception in China: Evidence from the CGSS 2006," Working Papers halshs-01143131, HAL.
    2. Michele Sennhauser, 2009. "Why the Linear Utility Function is a Risky Choice in Discrete-Choice Experiments," SOI - Working Papers 1014, Socioeconomic Institute - University of Zurich.
    3. Pfarr, Christian & Schmid, Andreas & Ulrich, Volker, 2013. "You can't always get what you want - East and West Germans' attitudes and preferences regarding the welfare state," MPRA Paper 47240, University Library of Munich, Germany.
    4. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.
    5. Bilal El Rafhi & Alexandre Volle, 2020. "The Effect of the Arab Spring on Preferences for Redistribution in Egypt," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(4), pages 875-903, December.
    6. Zhou Xun, 2015. "Preference for Redistribution and Inequality Perception in China: Evidence from the CGSS 2006," AMSE Working Papers 1518, Aix-Marseille School of Economics, France.
    7. Bilal El Rafhi & Alexandre Volle, 2019. "The Effect of the Arab Spring on the Preferences for Redistribution in Egypt," Post-Print hal-02101392, HAL.
    8. Kirchmaier, Isadora & Prüfer, Jens & Trautmann, Stefan T., 2018. "Religion, moral attitudes and economic behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 148(C), pages 282-300.
    9. Peter Zweifel & Ilja Neustadt, 2013. "Why Does Income Redistribution Differ Between Countries? Comparative Evidence From Germany and Switzerland," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(3), pages 39-47, October.
    10. Peter Zweifel & Ilja Neustadt, 2013. "Why Does Income Redistribution Differ Between Countries? Comparative Evidence From Germany and Switzerland," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(03), pages 39-47, October.
    11. Pfarr, Christian, 2012. "Meltzer-Richard and social mobility hypothesis: revisiting the income-redistribution nexus using German choice data," MPRA Paper 43325, University Library of Munich, Germany.
    12. Neustadt, Ilja & Zweifel, Peter, 2018. "Redistribution in Whose Favor? Preferences with Regard to Nationality and Type of Beneficiaries," MPRA Paper 119465, University Library of Munich, Germany.
    13. repec:pra:mprapa:91766 is not listed on IDEAS
    14. Peter Backus & Alejandro Esteller-Moré, 2014. "Is income redistribution a form of insurance, a public good or both?," Working Papers 2014/33, Institut d'Economia de Barcelona (IEB).
    15. Natalia Mishagina & Claude Montmarquette, 2018. "The Demand for Economic Policies, Beliefs, and Willingness-to-Pay: The Case of the Minimum Wage Policy in Quebec," CIRANO Project Reports 2018rp-14, CIRANO.
    16. Gilad Be’ery & Pazit Ben-Nun Bloom, 2015. "God and the Welfare State - Substitutes or Complements? An Experimental Test of the Effect of Belief in God's Control," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-27, June.
    17. Peter G. Backus & Alejandro Esteller-Moré, 2017. "Risk aversion and inequity aversion in demand for unemployment benefits," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 198-220, April.
    18. Neustadt, Ilja & Zweifel, Peter, 2011. "Income redistribution: how to divide the pie?," MPRA Paper 35427, University Library of Munich, Germany.
    19. Fatica, Serena, 2011. "Preferences for redistribution, the size of government and the tax system," MPRA Paper 29782, University Library of Munich, Germany.
    20. Kirchmaier, Isadora & Prüfer, Jens & Trautmann, Stefan T., 2018. "Religion, moral attitudes & economic behavior," Other publications TiSEM 669f51df-0d23-4657-8b16-5, Tilburg University, School of Economics and Management.
    21. Peter Backus & Alejandro Esteller-Moré, 2014. "Is income redistribution a form of insurance, a public good or both?," Working Papers 2014/33, Institut d'Economia de Barcelona (IEB).
    22. repec:ces:ifodic:v:11:y:2013:i:3:p:19099103 is not listed on IDEAS

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    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other

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