Working Paper: NBER ID: w29375
Authors: Johanna Mollerstrom; Avner Strulovshlain; Dmitry Taubinsky
Abstract: We report the results of an online experiment studying preferences for giving and preferences for group-wide redistribution in small (4-person) and large (200-person) groups. We find that the desire to engage in voluntary giving decreases significantly with group size. However, voting for group-wide redistribution is precisely estimated to not depend on group size. Moreover, people’s perception of the size of their reference group is malleable, and affects their desire to give. These results suggest that government programs, such as progressive tax-and-transfer systems, can help satisfy other-regarding preferences for redistribution in a way that creating opportunities for voluntary giving do not.
Keywords: group size; redistribution; voluntary giving; social preferences
JEL Codes: D63; D9
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Perceived Group Size (C92) | Individual Voluntary Giving (D64) |
| Group Size (4 to 200 participants) (C92) | Individual Voluntary Giving (D64) |
| Group Size (4 to 200 participants) (C92) | Voting for Groupwide Redistribution (D72) |