Disincentives from Redistribution: Evidence on a Dividend of Democracy

Sausgruber, Rupert; Sonntag, AxelORCID: https://orcid.org/0000-0002-2875-8759 and Tyran, Jean-Robert (2019) Disincentives from Redistribution: Evidence on a Dividend of Democracy. WU Vienna University of Economics and Business, Universität Wien, WU International Taxation Research Paper Series 2019 (05), 51 p.

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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.

Item Type: Discussion/ Working Paper (Unspecified)
Keywords: redistribution, disincentive effect, voting, legitimacy, real-effort task, lab experiment
Classification Codes (e.g. JEL): JEL Classification: C92, D31, D72, H23
Research Units: Former Research Units (until 2020) > Insight Austria
Related URLs:
Date Deposited: 06 Nov 2019 09:08
Last Modified: 06 Nov 2019 09:08
URI: https://irihs.ihs.ac.at/id/eprint/5194

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