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Inequality, welfare and income distribution: Experimental approaches PDF

258 Pages·2004·1.263 MB·English
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RESEARCHONECONOMICINEQUALITY VOLUME11 INEQUALITY, WELFARE AND INCOME DISTRIBUTION: EXPERIMENTAL APPROACHES EDITEDBY FRANK COWELL 2004 Amsterdam–Boston–Heidelberg–London–NewYork–Oxford Paris–SanDiego–SanFrancisco–Singapore–Sydney–Tokyo INEQUALITY, WELFARE AND INCOME DISTRIBUTION: EXPERIMENTAL APPROACHES RESEARCH ON ECONOMIC INEQUALITY Series Editors: Yoram Amiel and John A. Bishop ELSEVIERB.V. ELSEVIERInc. ELSEVIERLtd ELSEVIERLtd SaraBurgerhartstraat25 525BStreet,Suite1900 TheBoulevard,Langford 84TheobaldsRoad P.O.Box211 SanDiego Lane,Kidlington London 1000AEAmsterdam CA92101-4495 OxfordOX51GB WC1X8RR TheNetherlands USA UK UK ©2004ElsevierLtd.Allrightsreserved. ThisworkisprotectedundercopyrightbyElsevierLtd,andthefollowingtermsandconditionsapplytoits use: Photocopying Singlephotocopiesofsinglechaptersmaybemadeforpersonaluseasallowedbynationalcopyrightlaws. PermissionofthePublisherandpaymentofafeeisrequiredforallotherphotocopying,includingmultiple orsystematiccopying,copyingforadvertisingorpromotionalpurposes,resale,andallformsofdocument delivery.Specialratesareavailableforeducationalinstitutionsthatwishtomakephotocopiesfornon-profit educationalclassroomuse. PermissionsmaybesoughtdirectlyfromElsevier’sRightsDepartmentinOxford,UK;phone:(+44)1865 843830,fax:(+44)1865853333,e-mail:[email protected] viatheElsevierhomepage(http://www.elsevier.com/locate/permissions). IntheUSA,usersmayclearpermissionsandmakepaymentsthroughtheCopyrightClearanceCenter,Inc., 222RosewoodDrive,Danvers,MA01923,USA;phone:(+1)(978)7508400,fax:(+1)(978)7504744,andin theUKthroughtheCopyrightLicensingAgencyRapidClearanceService(CLARCS),90TottenhamCourt Road,LondonW1P0LP,UK;phone:(+44)2076315555;fax:(+44)2076315500.Othercountriesmay havealocalreprographicrightsagencyforpayments. DerivativeWorks Tablesofcontentsmaybereproducedforinternalcirculation,butpermissionofthePublisherisrequiredfor externalresaleordistributionofsuchmaterial.PermissionofthePublisherisrequiredforallotherderivative works,includingcompilationsandtranslations. ElectronicStorageorUsage PermissionofthePublisherisrequiredtostoreoruseelectronicallyanymaterialcontainedinthiswork, includinganychapterorpartofachapter. Exceptasoutlinedabove,nopartofthisworkmaybereproduced,storedinaretrievalsystemortransmitted inanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,withoutprior writtenpermissionofthePublisher. Addresspermissionsrequeststo:Elsevier’sRightsDepartment,atthefaxande-mailaddressesnotedabove. Notice NoresponsibilityisassumedbythePublisherforanyinjuryand/ordamagetopersonsorpropertyasa matterofproductsliability,negligenceorotherwise,orfromanyuseoroperationofanymethods,products, instructionsorideascontainedinthematerialherein.Becauseofrapidadvancesinthemedicalsciences,in particular,independentverificationofdiagnosesanddrugdosagesshouldbemade. Firstedition2004 LibraryofCongressCataloginginPublicationData AcatalogrecordisavailablefromtheLibraryofCongress. BritishLibraryCataloguinginPublicationData AcataloguerecordisavailablefromtheBritishLibrary. ISBN:0-7623-1113-4 ISSN:1049-2585(Series) (cid:1)∞ThepaperusedinthispublicationmeetstherequirementsofANSI/NISOZ39.48-1992(Permanenceof Paper).PrintedinTheNetherlands. CONTENTS LISTOFCONTRIBUTORS vii PREFACE ix WHYDOPEOPLEVIOLATETHETRANSFERPRINCIPLE? EVIDENCEFROMEDUCATIONALSAMPLESURVEYS YoramAmiel,FrankCowellandDanSlottje 1 EFFICIENCY,EQUITYANDDEMOCRACY: EXPERIMENTALEVIDENCEONOKUN’SLEAKYBUCKET StevenR.Beckman,JohnP.FormbyandW.JamesSmith 17 HOWMANIPULABLEAREFAIRNESSPERCEPTIONS?THE EFFECTOFADDITIONALALTERNATIVES YoellaBereby-MeyerandBritGrosskopf 43 ANEXPERIMENTALANALYSISOFSOCIALMOBILITY COMPARISONS MicheleBernasconiandValentinoDardanoni 55 SOCIALWELFARE,THEVEILOFIGNORANCEAND PURELYINDIVIDUALRISK:ANEMPIRICAL EXAMINATION KristofBosmansandErikSchokkaert 85 ANEXPERIMENTALSTUDYOFTHEPOUMHYPOTHESIS DanieleChecchiandAntonioFilippin 115 v vi ONTHEATTITUDETOWARDSINEQUALITY LiemaDavidovitzandYoramKroll 137 APPROACHINGFAIRBEHAVIOR:DISTRIBUTIONALAND RECIPROCALPREFERENCES AlexanderKritikosandFriedelBolle 149 FAIRNESS-BASEDALTRUISMANDREDISTRIBUTION:AN EXPERIMENTALAPPROACH LuigiMittone 181 INEQUALITYANDPROCEDURALFAIRNESSINA MONEY-BURNINGANDSTEALINGEXPERIMENT DanielJohnZizzo 215 LIST OF CONTRIBUTORS YoramAmiel DepartmentofEconomicsandManagement, RuppinInstitute,Emek-Hefer,Israel StevenR.Beckman UniversityofColoradoatDenver,Denver,CO, USA YoellaBereby-Meyer DepartmentofEducation,BenGurionUniversity oftheNegev,BeerSheva,Israel MicheleBernasconi DipartimentodiEconomia,Universita` dell’Insubria,Varese,Italy FriedelBolle DepartmentofEconomics,Europa-Universita¨t Viadrina,Frankfurt(Oder),Germany KristofBosmans KatholiekeUniversiteitLeuven,Leuven,Belgium DanieleChecchi UniversityofMilan,Milan,Italy FrankCowell STICERDandEconomicsDepartment,London SchoolofEconomicsandPoliticalScience, London,U.K. ValentinoDardanoni DipartimentodiScienzeEconomiche,Aziendalie Finanziarie,Universita` diPalermo,Palermo,Italy LiemaDavidovitz DepartmentofEconomicsandManagement, RuppinInstitute,Emek-Hefer,Israel AntonioFilippin EUI,Florence,Italy JohnP.Formby DepartmentofEconomics,FinanceandLegal Studies,UniversityofAlabama,Tuscaloosa,AL, USA BritGrosskopf DepartmentofEconomics,TexasA&M University,CollegeStation,TX,USA vii viii AlexanderKritikos DepartmentofEconomics,Europa-Universita¨t Viadrina,Frankfurt(Oder),Germany YoramKroll SchoolofBusiness,HebrewUniversity,Jerusalem, Israel LuigiMittone ComputableandExperimentalEconomics Laboratory,DepartmentofEconomics,University ofTrento,Trento,Italy ErikSchokkaert KatholiekeUniversiteitLeuven,Leuven,Belgium W.JamesSmith UniversityofColoradoatDenver,Denver,CO, USA DanSlottje EconomicsDepartment,SouthernMethodist University,Dallas,TX,USA DanielZizzo ChristChurchCollege,UniversityofOxford, Oxford,U.K. PREFACE The emerging literature on experimental methods in connection with economic inequality has shed fresh light on how to think about inequality, how important issues of equality are in comparison with other economic objectives and how individualsincorporatecriteriaofequalityandfairnessintotheirowndecisions. This special issue covers a wide range of topics in the field of income distribution and extends the approach to related issues such as mobility and attitudestorisk.Theselectionofpapersincludesbothparticipatoryexperiments whereindividualsrespondtoeconomicincentivesandquestionnaireexperiments designed to investigate the extent to which individuals’ values and attitudes conform to the way that economists and others conventionally model inequality andwelfare.Thecontributionsappearbyalphabeticalorderofauthor.Allpapers wererefereedintheusualway.Ihavebeengreatlyassistedbyadvicefrom: StevenBeckman AstriMuren JordiBrandts AdamOliver GuillermoCruces MatthewRabin KurtDevooght XaviRamos UrsFischbacher JavierRuiz-Castillo JohnFormby ErikSchokkaert UriGneezy MartinSefton HansGru¨ner MichaelTagler HeikeHennigSchmidt RichardWahlund JamesKonow PaulWebley ShlomoMaital GeorgeWu SarahMaxwell RamiZwick FrankCowell VolumeEditor ix

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