Ghiglino, Christian and Juárez-Luna, David and Müller, Andreas (2021) Class Altruism and Redistribution. The Economic Journal, 131 (640). pp. 3274-3295. DOI https://doi.org/10.1093/ej/ueab022
Ghiglino, Christian and Juárez-Luna, David and Müller, Andreas (2021) Class Altruism and Redistribution. The Economic Journal, 131 (640). pp. 3274-3295. DOI https://doi.org/10.1093/ej/ueab022
Ghiglino, Christian and Juárez-Luna, David and Müller, Andreas (2021) Class Altruism and Redistribution. The Economic Journal, 131 (640). pp. 3274-3295. DOI https://doi.org/10.1093/ej/ueab022
Abstract
Why do tax rates vary so much across countries? We study the role of other-regarding preferences and ethnic fragmentation in redistribution. A government is elected by altruistic voters and chooses a redistributive income tax. Altruism is directed toward social identity groups. Three main factors yield low levels of redistribution: (i) strong in-group altruism among rich voters—referred to as class altruism; (ii) weak universal altruism—in particular among the rich; and (iii) ethnic fragmentation among poor voters. We document survey evidence that the pattern of altruism in the United States and the European Union is consistent with the observed differences in taxes.
Item Type: | Article |
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Additional Information: | Source info: CEPR Discussion Paper No. DP15793 |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 23 Mar 2021 09:55 |
Last Modified: | 30 Oct 2024 19:19 |
URI: | http://repository.essex.ac.uk/id/eprint/30079 |
Available files
Filename: ueab022.pdf
Licence: Creative Commons: Attribution-Noncommercial 3.0