Neustadt, Ilja and Zweifel, Peter (2011): Income redistribution: how to divide the pie?
Download (259Kb) | Preview
In this paper, we elicit preferences of Swiss citizens for the allocation of income redistribution to different uses through a Discrete Choice Experiment performed in 2008. Neustadt and Zweifel (2009} provide an estimate of the total desired amount of income redistribution as a share of disposable income. Here, we estimate marginal willingness-to-pay values for types of recipients (old-age pensioners, people with ill health, the unemployed, working poor, and families with children) and their nationality (Swiss, citizens of western European countries, others). Hypotheses derived from the insurance motive for redistribution receive some empirical support.
|Item Type:||MPRA Paper|
|Original Title:||Income redistribution: how to divide the pie?|
|Keywords:||Income redistribution, preferences, willingness to pay, discrete choice experiments, conjoint analysis, social status|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H29 - Other
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field Experiments
|Depositing User:||Ilja Neustadt|
|Date Deposited:||16. Dec 2011 00:21|
|Last Modified:||13. Feb 2013 02:10|
Akkoyunlu, S., Neustadt, I. and Zweifel, P. (2009). Why Does the Amount of Income Redistribution Differ between United States and Europe? The Janus Face of Switzerland, SOI Working Paper No. 0810, University of Zurich, Socioeconomic Institute.
Alesina, A. and Angeletos, G.-M. (2005). Fairness and Redistribution, The American Economic Review 95(4): 960–980.
Alesina, A. and Giuliano, P. (2009). Preferences for Redistribution, Working Paper.
Alesina, A. and La Ferrara, E. (2005). Preferences for Redistribution in the Land of Opportunities, Journal of Public Economics 89: 897–931.
Beck, J. H. (1994). An Experimental Test of Preferences for the Distribution of Income and Individual Risk Aversion, Eastern Economic Journal 20(2): 131–145.
Ben-Akiva, M. E. and Lerman, S. R. (1985). Discrete Choice Analysis, MIT Press.
Benabou, R. and Ok, E. (2001). Social Mobility and the Demand for Redistribution: the POUM Hypothesis, Quarterly Journal of Economics 116(2): 447–487.
Benabou, R. and Tirole, J. (2006). Belief in a Just World and Redistributive Politics, Quarterly Journal of Economics 121(2): 699–746.
Boeri, T., Boersch-Supan, A. and Tabellini, G. (2002). Pension Reforms and the Opinions of European Citizens, The American Economic Review 92(2): 396–401.
Boeri, T., Boersch-Supan, A., Tabellini, G., Moene, K. O. and Lockwood, B. (2001). Would You Like to Shrink the Welfare State? A Survey of European Citizens, Economic Policy 16(32): 7–50.
Carlsson, F. and Martinsson, P. (2003). Design Techniques for Stated Preference Methods in Health Economics, Health Economics 12: 281–294.
Corneo, G. and Fong, C. (2008). What’s the Monetary Value of Distributive Justice? Journal of Public Economics 92: 289–308.
Fong, C. (2001). Social Preferences, Self-Interest, and the Demand for Redistribution, Journal of Public Economics 82: 225–246.
Fong, C., Bowles, H. and Gintis, H. (2006). Strong Reciprocity and the Welfare State, in: Handbook of the Economics of Giving, Altruism and Reciprocity. Vol. 2, Ch. 23.
Greene, W. H. (2000). Econometric Analysis, 4th edn, Prentice Hall.
Hensher, D. A., Louviere, J. J. and Swait, J. D. (1999). Combining Sources of Preference Data, Journal of Econometrics 89(1–2): 197–221.
Hirschman, A. and Rothschild, M. (1973). The Changing Tolerance of Income Inequality in the Course of Economic Development, Quarterly Journal of Economics 87(4): 544–566.
Hole, A. R. (2007). A Comparison of Approaches to Estimating Confidence Intervals for Willingness to Pay Measures, Health Economics 16: 827–840.
Lancaster, K. (1971). Consumer Demand: A New Approach, Columbia University Press.
Lizzeri, A. and Persico, N. (2001). The Provision of Public Goods under Alternative Electoral Incentives, The American Economic Review 91(1): 225–239.
Louviere, J. J., Hensher, D. A. and Swait, J. D. (2000). Stated Choice Methods - Analysis and Application, Cambridge University Press.
Luce, D. (1959). Individual Choice Behavior, Wiley and Sons, New York.
Manski, C. F. and Lerman, S. F. (1977). The Estimation of Choice Probabilities from Choice Based Samples, Econometrica 45(8): 1977–1988.
McFadden, D. (1974). Conditional Logit Analysis of Quantitative Choice Behavior, in: Frontiers of Economics, pp. 105–142. ed. P. Zarembka, Academic Press, New York.
McFadden, D. (1981). Econometric Models of Probabilistic Choice, in: Structural Analysis of Discrete Data with Econometric Applications, pp. 198–272. ed. by Ch. Manski and D. McFadden, MIT Press.
McFadden, D. (2001). Economic Choices, The American Economic Review 91(3): 351–378.
Meltzer, A. H. and Richard, S. F. (1981). A Rational Theory of the Size of Government, Journal of Political Economy 89(5): 914–927.
Merino-Castello, A. (2003). Eliciting Consumers’ Preferences Using Stated Preference Discrete-Choice Models: Contingent Ranking versus Choice Experiment, University Pompeu Fabra Economics and Business Working Paper No. 705.
Milesi-Ferretti, G. M., Perotti, R. and Rostagno, M. (2002). Electoral Systems and Public Spending, Quarterly Journal of Economics 117: 609–657.
Neustadt, I. (2011). Do Religious Beliefs Explain Preferences for Income Redistribution? Experimental Evidence, CESifo Economic Studies 57(4): 623-652.
Neustadt, I. and Zweifel, P. (2009). Economic Well-Being, Social Mobility, and Preferences for Income Redistribution: Evidence from a Discrete Choice Experiment, SOI Working Paper 0909, University of Zurich, Socioeconomic Institute.
Neustadt, I. and Zweifel, P. (2010). Is the Welfare State Sustainable? Experimental Evidence, SOI Working Paper No. 1003 University of Zurich, Socioeconomic Institute.
Persson, T. and Tabellini, G. (2000). Political Economics: Explaining Economic Policy, MIT Press.
Persson, T. and Tabellini, G. (2003). The Economic Effects of Constitutions, Munich Lectures in Economics, MIT Press.
Rawls, J. (1999). A Theory of Justice, Belknap Press of Harvard University Press.
Roberts, K. W. S. (1977). Voting over Income Tax Schedules, Journal of Public Economics 8: 329–340.
Romer, T. (1975). Individual Welfare, Majory Voting, and the Properties of a Linear Income Tax, Journal of Public Economics 4: 163–185.
Ryan, M. (2004). A Comparison on Stated Preference Methods for Estimating Monetary Values, Health Economics 13(3): 291–296.
Samuelson, P. A. (1938). A Note on the Pure Theory of Consumer’s Behaviour, Economics 5(17): 61–71.
Telser, H. (2002). Nutzenmessung im Gesundheitswesen, Kovac, Hamburg.