This paper provides both a theoretical framework and an experimental test to analyze how individual responsibility affects social preferences for redistribution in settings where individuals are differentially subjected to the probability of a productivity shock. Our results confirm the predictions of the theoretical section of the paper which presents the redistribution game as a public good game.
redistribution
Working Paper Series
Understanding the mechanisms of taxation and public transfers which prevail in our contemporary economies
by
IREF
The model presented in the paper leads us to predict that the level of redistribution will be all the more important where the jurisdictions have been able to shelter themselves…