Disincentives from Redistribution: Evidence on a Dividend of Democracy
54 Pages Posted: 11 Jun 2019
There are 3 versions of this paper
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
Downloads
134
Disincentives from Redistribution: Evidence on a Dividend of Democracy
Number of pages: 51
Posted: 14 Jun 2019
Downloads
69
Date Written: June 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: disincentive effect, Lab Experiment, Legitimacy, Real effort task, redistribution, voting
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 (June 2019). CEPR Discussion Paper No. DP13773, Available at SSRN: https://ssrn.com/abstract=3401860
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN