Working Paper: CEPR ID: DP2694
Authors: Giacomo Corneo; Hans Peter Grüner
Abstract: What drives people's support of governmental reduction of income inequality? We employ data from a large international survey in order to evaluate the explanatory power of three competing forces, referred to as the ?homo oeconomicus effect?, the ?public values effect?, and the ?social rivalry effect?. The empirical analysis reveals that at the aggregate level all three effects play a significant role in shaping individual preferences for political redistribution. Attitudes of citizens in formerly socialist countries turn out to differ from those of western citizens in a systematic way.
Keywords: governmental redistribution; political attitudes
JEL Codes: D31; D72; H23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Homo oeconomicus effect (HOE) (D11) | support for redistributive policies (H23) |
| economic self-interest (F52) | support for redistributive policies (H23) |
| Public values effect (PVE) (D46) | support for redistributive policies (H23) |
| Social rivalry effect (SRE) (C92) | support for redistributive policies (H23) |
| Pecuniary self-interest (D14) | support for redistribution (H23) |
| Public values (H49) | support for redistribution (H23) |
| Social status (I31) | support for redistribution (H23) |
| Socialist experience (P39) | dynamics of social status in relation to support for redistribution (D72) |