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Income redistribution: how to divide the pie?

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  • Neustadt, Ilja
  • Zweifel, Peter

Abstract

In this paper, we elicit preferences of Swiss citizens for the allocation of income redistribution to different uses through a Discrete Choice Experiment performed in 2008. Neustadt and Zweifel (2009} provide an estimate of the total desired amount of income redistribution as a share of disposable income. Here, we estimate marginal willingness-to-pay values for types of recipients (old-age pensioners, people with ill health, the unemployed, working poor, and families with children) and their nationality (Swiss, citizens of western European countries, others). Hypotheses derived from the insurance motive for redistribution receive some empirical support.

Suggested Citation

  • Neustadt, Ilja & Zweifel, Peter, 2011. "Income redistribution: how to divide the pie?," MPRA Paper 35427, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35427
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    References listed on IDEAS

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    Cited by:

    1. Neustadt, Ilja & Zweifel, Peter, 2010. "Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution," MPRA Paper 22233, University Library of Munich, Germany.
    2. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2014. "Identifying latent interest-groups: An analysis of heterogeneous preferences for income-redistribution," MPRA Paper 58823, University Library of Munich, Germany.
    3. Pfarr, Christian & Schmid, Andreas & Mørkbak, Morten Raun, 2015. "Latent characteristics and preferences for income redistribution," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113001, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Income redistribution; preferences; willingness to pay; discrete choice experiments; conjoint analysis; social status;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • 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

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