Arbeitspapier

Social mobility and redistributive taxation

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.

Language
Englisch

Bibliographic citation
Series: WZB Discussion Paper ; No. SP II 2010-15

Classification
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Positive Analysis of Policy Formulation and Implementation
Taxation, Subsidies, and Revenue: General
Subject
Median voter
redistribution
social mobility

Event
Geistige Schöpfung
(who)
Konrad, Kai A.
Morath, Florian
Event
Veröffentlichung
(who)
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
(where)
Berlin
(when)
2010

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Konrad, Kai A.
  • Morath, Florian
  • Wissenschaftszentrum Berlin für Sozialforschung (WZB)

Time of origin

  • 2010

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