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We embed an experiment in a large-scale representative survey to investigate how relative wealth affects risk-taking and how this effect varies as a function of perceived control over life outcomes. Our results contest the common prediction of higher risk-taking in the middle of the...
Persistent link: https://www.econbiz.de/10015409570
Unique administrative data on a representative population's cognitive abilities, spending, and financials reveal that consumers at or below median cognitive abilities barely react when their incentives to spend or borrow change, even if they earn high incomes and are financially unconstrained...
Persistent link: https://www.econbiz.de/10014283722
We study beliefs about wealth inequality and preferences for wealth redistribution. For this, we conduct a large … overestimate their position reduce their aversion to inequality after learning their position, while those who underestimate their … further investigate heterogeneity in treatment effects and present evidence that younger participants decrease their support …
Persistent link: https://www.econbiz.de/10014543737
review 144 studies conducted between 1996 and 2024 and show that group-tailored interventions along key inequality dimensions …-gender, income, age, and regionality-may not only enhance tax compliance but also help address inequality. Furthermore, our … heterogeneity analysis shows that intervention effectiveness can be enhanced by the incorporation of specific characteristics …
Persistent link: https://www.econbiz.de/10015405723
Arguably, for many citizens the perceived expected disutility from sanctions is smaller than the monetary gain from tax evasion. Nevertheless most people pay their taxes most of the time. In a lab experiment, we show that the willingness to pay taxes even absent enforcement is indeed pronounced....
Persistent link: https://www.econbiz.de/10011977884
The article is concerned with understanding the impact of social preferences and wealth inequality on aggregate … microeconomic level and how these in turn translate into macroeconomic outcomes. Increasing the workers' sensitivity to inequality … wealth differences raise aggregate profit and output but entail distributional utility losses and increased inequality …
Persistent link: https://www.econbiz.de/10012421506
This paper seeks to understand whether the way in which inequality is communicated through measurements influences … individuals' fairness perceptions regarding wealth inequality. It begins from the premise that prominent measures of inequality …, such as the Gini coefficient, fall short of providing an intuitive understanding of inequality for most people. Following …
Persistent link: https://www.econbiz.de/10014314736
Preferences over wealth can explain why households do not spend more when real interest rates fall, because they save more than optimal under a standard model. However, little is known about preferences over wealth empirically. We run an intentionally simple lab experiment on intertemporal...
Persistent link: https://www.econbiz.de/10012098818
Unique administrative data on a representative population’s cognitive abilities, spending, and financials reveal that consumers at or below median cognitive abilities barely react when their incentives to spend or borrow change, even if they earn high incomes and are financially unconstrained...
Persistent link: https://www.econbiz.de/10014347387
This paper evaluates theoretical explanations for the propensity of households to increase spending in response to the arrival of predictable, lump-sum payments, using households in the Nielsen Consumer Panel who received $25 million in Federal stimulus payments that were distributed randomly...
Persistent link: https://www.econbiz.de/10013004250