Download This PaperDisincentives from Redistribution: Evidence on a Dividend of Democracy
51 Pages Posted: 14 Jun 2019
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Disincentives from Redistribution: Evidence on a Dividend of Democracy
WU International Taxation Research Paper Series No. 2019 - 05
Number of pages: 52
Posted: 28 Oct 2019
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Disincentives from Redistribution: Evidence on a Dividend of Democracy
Number of pages: 51
Posted: 14 Jun 2019
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Disincentives from Redistribution: Evidence on a Dividend of Democracy
CEPR Discussion Paper No. DP13773
Number of pages: 54
Posted: 11 Jun 2019
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Date Written: May 31, 2019
Abstract
We experimentally study the disincentive effect of taxing work and redistributing tax revenues when redistribution is imposed vs. democratically chosen in a vote. We find a “dividend of democracy” in the sense that the disincentive effect is substantially smaller when redistribution is chosen in a vote than when it is imposed. Redistribution seems to be more legitimate, and hence less demotivating, when accepted in a vote.
Keywords: Redistribution, disincentive effect, voting, legitimacy, realeffort task, lab experiment
JEL Classification: C92, D31, D72, H23
Suggested Citation: Suggested Citation
Sausgruber, Rupert and Sonntag, Axel and Tyran, Jean-Robert, Disincentives from Redistribution: Evidence on a Dividend of Democracy (May 31, 2019). Available at SSRN: https://ssrn.com/abstract=3398138 or http://dx.doi.org/10.2139/ssrn.3398138
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