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Income redistribution: how to divide the pie?

  • Neustadt, Ilja
  • Zweifel, Peter

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.

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File URL: https://mpra.ub.uni-muenchen.de/35427/2/MPRA_paper_35427.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35427.

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Date of creation: 06 Oct 2011
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Handle: RePEc:pra:mprapa:35427
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  1. Arne Risa Hole, 2006. "A comparison of approaches to estimating confidence intervals for willingness to pay measures," Working Papers 008cherp, Centre for Health Economics, University of York.
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  3. Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
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  6. Benabou, Roland & Tirole, Jean, 2004. "Belief in a Just World and Redistributive Politics," Papers 08-15-2005a, Princeton University, Research Program in Political Economy.
  7. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
  8. Alessro Lizzeri & Nicola Persico, . "The Provision of Public Goods Under Alternative Electoral Incentives," Penn CARESS Working Papers b96440ba0bfa06ca550ac40aa, Penn Economics Department.
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  11. Hensher, David & Louviere, Jordan & Swait, Joffre, 1998. "Combining sources of preference data," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 197-221, November.
  12. 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.
  13. Alesina, Alberto F & La Ferrara, Eliana, 2002. "Preferences for Redistribution in the Land of Opportunities," CEPR Discussion Papers 3155, C.E.P.R. Discussion Papers.
  14. Sule Akkoyunlu & Ilja Neustadt & Peter Zweifel, 2009. "Why does the amount of income redistribution differ between the United States and Europe? The Janus face of Switzerland," KOF Working papers 09-228, KOF Swiss Economic Institute, ETH Zurich.
  15. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November.
  16. John H. Beck, 1994. "An Experimental Test of Preferences for the Distribution of Income and Individual Risk Aversion," Eastern Economic Journal, Eastern Economic Association, vol. 20(2), pages 131-145, Spring.
  17. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
  18. Tito Boeri & Axel Börsch-Supan & Guido Tabellini, 2001. "Would you like to shrink the welfare state? A survey of European citizens," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 7-50, 04.
  19. Mandy Ryan, 2004. "A comparison of stated preference methods for estimating monetary values," Health Economics, John Wiley & Sons, Ltd., vol. 13(3), pages 291-296.
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  22. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
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