TY - JOUR
T1 - The importance of the future when deciding levels of personal responsibility and demand for redistribution
AU - Beraldo, Sergio
AU - Piacenza, Massimiliano
AU - Turati, Gilberto
PY - 2022
Y1 - 2022
N2 - We experimentally investigate the link between individuals' value on future incomes and their support for redistributive policies today. The investigation identifies time preferences as a key driver of redistributive pol-icies via their effect on personal responsibility, defined as costly but productive effort. The investigation also accounts for the strategic interplay between individuals in the choice of effort, identifying two key strategies: either exercise more effort and ask for less redistribution or free ride on others' efforts, asking for more redis-tribution. We find that individuals oriented toward the future tend to invest more and ask for less redistribution. We discuss the policy implications of this result.
AB - We experimentally investigate the link between individuals' value on future incomes and their support for redistributive policies today. The investigation identifies time preferences as a key driver of redistributive pol-icies via their effect on personal responsibility, defined as costly but productive effort. The investigation also accounts for the strategic interplay between individuals in the choice of effort, identifying two key strategies: either exercise more effort and ask for less redistribution or free ride on others' efforts, asking for more redis-tribution. We find that individuals oriented toward the future tend to invest more and ask for less redistribution. We discuss the policy implications of this result.
KW - Income redistribution
KW - Intertemporal preferences
KW - Personal responsibility
KW - Proportional income tax
KW - Income redistribution
KW - Intertemporal preferences
KW - Personal responsibility
KW - Proportional income tax
UR - http://hdl.handle.net/10807/232051
U2 - 10.1016/j.econmod.2022.105982
DO - 10.1016/j.econmod.2022.105982
M3 - Article
SN - 0264-9993
VL - 116
SP - 1
EP - 14
JO - Economic Modelling
JF - Economic Modelling
ER -