Forthcoming publication in the European Economic Review

"Disincentives from Redistribution: Evidence on a Dividend of Democracy" by Rupert Sausgruber, Axel Sonntag and Jean-Robert Tyran has been accepted for publication in the European Economic Review

Title: Disincentives from redistribution: evidence on a dividend of democracy

Abstract: We experimentally study the disincentive effect of taxing work and redistributing tax revenues when redistribution is imposed vs. democratically chosen in a vote. We find a “dividend of democracy” in the sense that the disincentive effect is substantially smaller when redistribution is chosen in a vote than when it is imposed. Redistribution seems to be more legitimate, and hence less demotivating, when accepted in a vote.

Available on ScienceDirect



Jean-Robert Tyran