SOCIAL PREFERENCES AND TAX POLICY DESIGN: SOME EXPERIMENTAL EVIDENCE

C-Tier
Journal: Economic Inquiry
Year: 2007
Volume: 45
Issue: 3
Pages: 487-501

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article reports the results of a set of experiments designed to examine whether a taste for fairness affects people’s preferred tax structure. Using the Fehr and Schmidt model, we devise a simple test for the presence of social preferences in voting for alternative tax structures. The experimental results show that individuals demonstrate concern for their own payoff and inequality aversion in choosing between alternative tax structures. However, concern for redistribution decreases as the deadweight loss from progressive taxation increases. Our findings have important implications for tax policy design. (JEL C92, D63, H21, H23)

Technical Details

RePEc Handle
repec:bla:ecinqu:v:45:y:2007:i:3:p:487-501
Journal Field
General
Author Count
3
Added to Database
2026-01-24