Given that redistributive policies are based on the society’s preferences, where do preferences for redistribution come from? How do preferences for redistribution depend on the interpretation of the causes of income? How do external shocks and the inherited culture shape the formation of preferences for redistribution, as well as fairness views and related attitudes? We study a model in which agents’ pre-tax income depends on both effort and luck. Individuals know the income distribution and form beliefs about others’ effort. We plan to accompany the theoretical results by an empirical study.
Mitarbeit: Tom Truyts, Johannes Spinnewijn
Projektdauer: seit 2016