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Income redistribution and public good provision: an experiment

Maurice, Jonathan, Rouaix, Agathe and Willinger, Marc (2013) Income redistribution and public good provision: an experiment. International Economic Review, 54 (3). pp. 957-975.

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Official URL: http://dx.doi.org/10.1111/iere.12024

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.

Item Type: Article
Date: 2013
Refereed: Yes
Uncontrolled Keywords: Income redistribution, Information asymmetry, Neutrality theorems (Mathematics)
Subjects: C- GESTION > C5- Marketing
Divisions: TSM Research (Toulouse)
Site: UT1
Date Deposited: 03 Feb 2014 14:59
Last Modified: 18 Oct 2017 15:13
URI: http://publications.ut-capitole.fr/id/eprint/14050

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