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A Note on Aggregating Preferences for Redistribution

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Abstract

The policy predictions of standard heterogeneous agent macroeconomic models are often at odds with observed policies. We use the 2021 General Social Survey to investigate the drivers of individuals' preferences over taxes and redistribution. We find that these preferences are more strongly associated with political identity than with economic status. We discuss the implications for quantitative macroeconomic models with endogenous policy determination.

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  • Daniel R. Carroll & Andre Luduvice & Eric Young, 2024. "A Note on Aggregating Preferences for Redistribution," Working Papers 24-27, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwq:99166
    DOI: 10.26509/frbc-wp-202427
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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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