Pigouvian Tax Aversion and Inequity Aversion in the Lab
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Todd Cherry Ph.D., Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: We use an experimental market with externalities to test whether inequality aversion could help explain the popularity
of earmarking tax revenues. We find that voter opposition is not fully explained by material self-interest: Results
indicate that preferences for fairness influence voting behavior, with greater inequality in tax revenue distribution
negatively affecting the acceptability of the tax. In addition to this, we also discover a significant degree of tax-aversion
in the votes. Our findings provide greater understanding of the behavioral underpinnings of the positive impact that
earmarking has on the acceptability of Pigouvian taxes.
Pigouvian Tax Aversion and Inequity Aversion in the Lab
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Created on 2/22/2012
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Additional Information
- Publication
- Dallbekken, S., Kroll, S., and Cherry, T. L. (2010) Pigouvian Tax Aversion and Inequity Aversion in the Lab. Economics Bulletin, 30(3): 1914-1921. (July 2010) Available online at: http://www.economicsbulletin.com/
- Language: English
- Date: 2010