Disincentives from Redistribution: Evidence on a Dividend of Democracy

Research output: Working paperResearch

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.
Original languageEnglish
Number of pages52
DOIs
Publication statusPublished - 28 Oct 2019
SeriesUniversity of Copenhagen. Institute of Economics. Discussion Papers (Online)
Number19-08
ISSN1601-2461

    Research areas

  • redistribution, disincentive effect, voting, legitimacy, real-effort task, lab experiment, C92, D31, D72, H23

ID: 241647681