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Preferences for Redistribution and Perception of Fairness: an Experimental Study

Author

Listed:
  • Ruben Durante

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPREMAP - Centre pour la recherche économique et ses applications - ECO ENS-PSL - Département d'économie de l'ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres)

  • Louis Putterman
  • Joël van Der Weele

Abstract

We conduct a laboratory experiment to study how demand for redistribution of income depends on self-interest, insurance motives, and social concerns relating to inequality and efficiency. Our choice environments feature large groups of subjects and real-world framing, and differ with respect to the source of inequality (earned or arbitrary), the cost of taxation to the decision maker, the dead-weight loss of taxation, uncertainty about own pretax income, and whether the decision maker is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with the potential to inform modeling in macroeconomics and political economy.

Suggested Citation

  • Ruben Durante & Louis Putterman & Joël van Der Weele, 2014. "Preferences for Redistribution and Perception of Fairness: an Experimental Study," Post-Print hal-03393021, HAL.
    • Handle: RePEc:hal:journl:hal-03393021
    DOI: 10.1111/jeea.12082
    as

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