Income Redistribution and Public Good Provision: An Experiment

19 Pages Posted: 18 Jul 2013

See all articles by Jonathan Maurice

Jonathan Maurice

University of Toulouse 1 - Toulouse Graduate School of Management

Agathe Rouaix

Université Montpellier I

Marc Willinger

LAMETA, University of Montpellier 1

Date Written: August 2013

Abstract

We experimentally investigate the impact of income redistribution on voluntary contributions by groups of four subjects. We compare equalizing and unequalizing redistribution. Our data are consistent with the neutrality theorem: Redistribution does not affect the amount of voluntarily provided public good at the group level. However, at the individual level, subjects tend to underadjust with respect to the Nash prediction. We also observe an insignificant adjustment asymmetry between the poor and the rich: Subjects who become poorer adjust their contribution by a larger absolute amount than subjects who become richer. Finally, poor subjects tend to overcontribute significantly more than rich subjects.

Suggested Citation

Maurice, Jonathan and Rouaix, Agathe and Willinger, Marc, Income Redistribution and Public Good Provision: An Experiment (August 2013). International Economic Review, Vol. 54, Issue 3, pp. 957-975, 2013, Available at SSRN: https://ssrn.com/abstract=2295267 or http://dx.doi.org/10.1111/iere.12024

Jonathan Maurice (Contact Author)

University of Toulouse 1 - Toulouse Graduate School of Management ( email )

2, rue du Doyen Gabriel Marty
Cedex 9
Toulouse, 31042
France

Agathe Rouaix

Université Montpellier I

Avenue de la Mer Site Richter
163 Rue Auguste Broussonnet
Montpellier, Cedex 2 34090
France

Marc Willinger

LAMETA, University of Montpellier 1 ( email )

Avenue de la Mer Site Richter
163 Rue Auguste Broussonnet
34006 Montpellier Cedex 1, Cedex 2 34090
France

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