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Redistribution, other-regarding preferences, median voter, experiments
Abstract:
This paper analyzes the role of narrowly selfish and other-regarding preferences for the
median voter in a Meltzer-Richard (1981) framework. We use computerized and real
human co-players to distinguish between these sets of motivations. Redistribution to real
co-players has a negative effect on the median voter’s tax rate choice. Further, perceived
income mobility decreases the desired amount of redistribution. Our results suggest the
importance of concerns about own mobility as well as status concerns of the median voter
who tends to keep distance to the low-income group, whereas inequity aversion does not
play a role in the political economy context.
