Economic Well-Being, Social Mobility and Preferences for Income Redistribution: Evidence from a Discrete Choice Experiment

Neustadt, Ilja; Zweifel, Peter

doi:10.2139/ssrn.1445432

Cited by 19 publications

(20 citation statements)

References 57 publications

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“…On the other hand, Alesina and Glaeser (2004), Perotti (1996), and Rodriguez (1999) fail to find supporting evidence for this model. Moreover, Neustadt and Zweifel (2009) relate willingness to pay (WTP) for income redistribution elicited from a Discrete Choice Experiment (DCE, see Section 3.1 for details) to measures of economic well-being.…”

Section: General Determinants Of the Demand For Income Redistributionmentioning

confidence: 99%

“…Alesina and Giuliano (2009) examine the empirical evidence for the United States and briefly across countries, concluding that social mobility (if measured as the change in the occupational prestige) does decrease demand for redistribution once sociodemographic (age, gender, race) and socioeconomic characteristics (income, education) are controlled for. In their DCE-based study, Neustadt and Zweifel (2009) relate preferences for redistribution to mobility. They find partial empirical support for the POUM hypothesis.…”

Section: General Determinants Of the Demand For Income Redistributionmentioning

confidence: 99%

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Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

Neustadt¹

2011

CESifo Economic Studies

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Due to the mixed empirical evidence bearing on the economic determinants, beliefs have been at the center of attention of research into preferences for income redistribution. We elicit preferences for income redistribution through a Discrete Choice Experiment performed in 2008 in Switzerland and relate them to several behavioral determinants, in particular to religious beliefs. Estimated marginal willingness to pay (WTP) is positive among those who do not belong to a religious denomination, and negative otherwise. However, the marginal WTP is shown to increase with a higher degree of religiosity.Moreover, those who state that luck or connections play a crucial role in determining economic success exhibit significantly higher WTP values than those who deem effort to be decisive.

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Section: General Determinants Of the Demand For Income Redistributionmentioning

confidence: 99%

Section: General Determinants Of the Demand For Income Redistributionmentioning

confidence: 99%

Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

Neustadt¹

2011

CESifo Economic Studies

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“…There is, however, no additional e¤ect of adding actual social mobility to perceived social mobility, suggesting that the entire e¤ect of social mobility has already been captured in the Rand treatment. 22 While the lower preferred taxes in case of actual mobility are in line with payo¤-maximizing rational behavior, the similarity of the e¤ects of perceived mobility (Rand) and actual mobility (Mobi) is more di¢ cult to interpret. Subjects may follow a simple heuristic ("intuition", "gut feeling") that tells them that lower tax rates are better for them in the presence of income mobility.…”

Section: Resultsmentioning

confidence: 99%

Social Mobility and Redistributive Taxation

Konrad

Morath

2011

SSRN Journal

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We investigate redistributive taxation in a political economy experiment and determine how different patterns of social mobility affect the choices of redistributional taxes. In the absence of social mobility, voters choose tax rates that are very well in line with the prediction derived in the standard framework by Meltzer and Richard (1981). However, past or future changes in the income hierarchy affect the choice of the tax rate in the current period. The same is true for social mobility within the period to which the tax rate choice applies and for the case where the choice of the tax rate takes place behind the veil of ignorance. Due to our design of the experiment, these strong effects of own social mobility cannot be attributed to social or other-regarding preferences.

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“…Während der überwiegende Teil der Studien zu dieser Thematik darauf abstellt, die Determinanten der Nachfrage nach Umverteilung mittels umfragebasierter öko-nometrischer Analysen zu bestimmen, sind Studien, welche die Präferenzen der Individuen über die Zahlungsbereitschaft ermitteln, begrenzt. Mit Ausnahme von Neustadt und Zweifel (2010b) und (2010a) und Neustadt (2011 sind die bisherigen Untersuchungen nicht in der Lage, eine Budgetbeschränkung zu implementieren, welche die Individuen auch die Konsequenzen ihrer Entscheidungen auf ihr eigenes Einkommen in Betracht ziehen lässt. Hier bieten Discrete-Choice-Experimente eine Lösung in der Form, dass durch die eigenschaftsbasierte Darstellung von Gütern oder Produkten alle Merkmale einzelnen betrachtet werden können.…”

Section: Präsentation Der Choice-setsunclassified

Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung

Pfarr

Ulrich

2011

Review of Economics

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SummaryAs in most industrialized countries, the inequality regarding the distribution of household incomes in Germany has steadily increased. By collecting taxes and granting monetary transfers, the government tries to affect the personal distribution of incomes. Whereas the supply of redistribution is relatively easy to determine, it is rather difficult to identify the determinants of the citizens′ demand for redistribution. Most of the literature concerning the individuals′ preferences for redistribution relies on survey based analysis. A shortcoming of these studies is the failure of imposing a budget constraint. Discrete-Choice-Experiments (DCE) solve this problem by forcing individuals to take the consequences of their decisions with respect to their own income into account. This study aims at developing a theory based approach to elicit individuals′ preferences for redistribution using DCEs. For the specific case of Germany, we show how to design and implement such a DCE. In particular, we discuss how the price attribute in a DCE should be specified and which levels adequately define the price an individual is willing to pay for redistribution. We are able to demonstrate that even for a highly complex topic such as redistribution a correctly applied DCE can provide authoritative results. This allows deriving policy implications on how to design redistributive policies which are in line with citizens’ preferences.

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Economic Well-Being, Social Mobility and Preferences for Income Redistribution: Evidence from a Discrete Choice Experiment

Cited by 19 publications

References 57 publications

Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence

Social Mobility and Redistributive Taxation

Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung

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