Leaky Bucket in the Lab. The Effect of System Inefficiency on Voting on Redistribution

26 Pages Posted: 30 Aug 2017

See all articles by Markus S. Tepe

Markus S. Tepe

University of Oldenburg

Maximilian Lutz

University of Oldenburg

Fabian Paetzel

University of the German Federal Armed Forces - Helmut Schmidt Universität; DFG Research Group 2104

Jan Lorenz

Jacobs University Bremen

Date Written: August 28, 2017

Abstract

Introducing system inefficiency into a simplified Meltzer and Richard (1981) model is predicted to have a twofold effect; it alters subjects' rational vote and triggers their efficiency preferences. In a series of laboratory experiments, we find that system inefficiency biases subjects' preferences tax rate downwards by minus 8% in the individual vote and minus 17% in the group decision. Although these effects are in substantive terms not as strong as the rational egoistic prediction, the robustness analysis confirms that system inefficiency exerts a unique negative effect on subjects' vote choice and the final group decision.

Keywords: redistribution, inefficiency, voting, laboratory experiment, leaky bucket, political attitudes, taxation

JEL Classification: C91, C92, D72

Suggested Citation

Tepe, Markus S. and Lutz, Maximilian and Paetzel, Fabian and Lorenz, Jan, Leaky Bucket in the Lab. The Effect of System Inefficiency on Voting on Redistribution (August 28, 2017). Available at SSRN: https://ssrn.com/abstract=3027867 or http://dx.doi.org/10.2139/ssrn.3027867

Markus S. Tepe

University of Oldenburg ( email )

Ammerländer Heerstraße 114-118
Oldenburg, DE D-26111
Germany

HOME PAGE: http://www.tepems.de

Maximilian Lutz

University of Oldenburg ( email )

Ammerländer Heerstraße 114-118
Oldenburg, DE D-26111
Germany

Fabian Paetzel (Contact Author)

University of the German Federal Armed Forces - Helmut Schmidt Universität ( email )

Holstenhofweg 85
Hamburg, 22008
Germany

DFG Research Group 2104 ( email )

Holstenhofweg 85
Hamburg, DE 22043
Germany

HOME PAGE: http://bedarfsgerechtigkeit.hsu-hh.de/en?set_language=en

Jan Lorenz

Jacobs University Bremen ( email )

Campus Ring 1
Bremen, 28759
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
14
Abstract Views
146
PlumX Metrics