TY - UNPB

T1 - Disincentives from Redistribution

T2 - Evidence on a Dividend of Democracy

AU - Sausgruber, Rupert

AU - Sonntag, Axel

AU - Tyran, Jean-Robert Karl

PY - 2019/10/28

Y1 - 2019/10/28

N2 - 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.

AB - 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.

KW - redistribution

KW - disincentive effect

KW - voting

KW - legitimacy

KW - real-effort task

KW - lab experiment

KW - C92

KW - D31

KW - D72

KW - H23

U2 - 10.2139/ssrn.3475358

DO - 10.2139/ssrn.3475358

M3 - Working paper

T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)

BT - Disincentives from Redistribution

ER -