A new working paper by Rupert Sausgruber, Axel Sonntag and Jean-Robert Tyran on "Disincentives from Redistribution: Evidence on a Dividend of Democracy" is available on SSRN.
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.
