scholarly journals Efficiency loss and support for income redistribution: Evidence from a laboratory experiment

2021 ◽  
pp. 104346312110155
Author(s):  
Markus Tepe ◽  
Fabian Paetzel ◽  
Jan Lorenz ◽  
Maximilian Lutz
Keyword(s):  
Laboratory Experiment ◽  
Group Communication ◽  
Negative Relationship ◽  
Income Redistribution ◽  
Point Pattern ◽  
Minor Role ◽  
Treatment Variable ◽  
Efficiency Loss ◽  
Tax Rate ◽  
Negative Effect

Income redistribution with an efficiency loss is expected to have a twofold negative effect on support for redistribution, as it lowers egoistic support for redistribution and activates efficiency preferences. This study tests whether such a negative relationship exists, increases with the size of efficiency loss and interacts with group communication and the income position. We present a laboratory experiment in which subjects receive a randomly allocated income and must coordinate on a majority tax rate using a deliberative communication tool. The rate of money lost as a part of the redistribution process is manipulated as a treatment variable (0%, 5%, 20%, or 60%). Experimental evidence shows that efficiency loss exerts a robust negative effect on support for redistribution. The effect shows a tipping point pattern, is stronger at the lower end of the income distribution and is not fully explained by egoistic preferences. Inefficiency matters mostly for the chosen tax rate after group communication. At an efficiency loss of 60%, however, group communication does not affect support for redistribution, which implies that inefficiencies tend to play a minor role in the context of redistribution as long as they are within a moderate range. JEL Classification: C91, C92, D63, D72

scholarly journals “Thanks in advance” – The negative effect of a polite phrase on compliance with a request

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Lisa Bruttel ◽  
Juri Nithammer ◽  
Florian Stolley
Keyword(s):  
Laboratory Experiment ◽  
Treatment Variable ◽  
Negative Effect ◽  
Open Question

Abstract This paper studies the effect of the commonly used phrase “thanks in advance” on compliance with a small request. In a controlled laboratory experiment we ask participants to give a detailed answer to an open question. The treatment variable is whether or not they see the phrase “thanks in advance.” Our participants react to the treatment by exerting less effort in answering the request even though they perceive the phrase as polite.

Hours of Paid Work and Volunteering: Evidence From Danish Panel Data

2021 ◽  
pp. 089976402199166
Author(s):  
Hans-Peter Y. Qvist
Keyword(s):  
Panel Data ◽  
Social Integration ◽  
Negative Relationship ◽  
Time Constraint ◽  
Integration Theory ◽  
Paid Work ◽  
Constraint Theory ◽  
The Social ◽  
Negative Effect ◽  
The Relationship

The nature of the relationship between the time people spend on paid work and volunteering remains debated in the social sciences. Time constraint theory suggests a negative relationship because people can allocate only as much time to volunteering as their work responsibilities permit. However, social integration theory suggests a more complex inverse U-shaped relationship because paid work not only limits people’s free time but also plays a key role in their social integration. Departing from these competing theories, this study uses two-wave panel data from Denmark to examine the relationship between hours of paid work and volunteering. In support of time constraint theory, the results suggest that hours of paid work have a significant negative effect on the total number of hours that people spend volunteering, not mainly because paid work hours affect people’s propensity to volunteer but because they affect the number of hours that volunteers contribute.

scholarly journals Financial constraint, trust, and export performances: firm-level evidence from Africa

2021 ◽  
pp. 1-23
Author(s):  
Maty Konte ◽  
Gideon Ndubuisi
Keyword(s):  
Financial Constraints ◽  
Interpersonal Trust ◽  
Negative Relationship ◽  
Financial Constraint ◽  
African Countries ◽  
Firm Level ◽  
Country Level ◽  
The World Bank ◽  
Negative Effect ◽  
Enterprise Surveys

Abstract Several existing studies have documented a negative relationship between firm financial constraint and export activities but do not attempt to examine factors that could attenuate this relationship in Africa. In this paper, we examine the effect of financial constraint on exports in Africa and explore how the level of trust in countries where firms are located shapes this relationship. We combine the World Bank Enterprise Surveys with different measures of country-level personal and interpersonal trust computed from the Afrobarometer surveys of 19 African countries. Our results show that financial constraints negatively affect export activities. However, this negative effect is attenuated for firms that are located in trust-intensive societies. These findings are robust to different specifications. Interestingly, we find that small and medium-sized enterprises in Africa are more likely to be affected by financial constraints but also more likely to benefit from a higher level of both personal and interpersonal trust, while for larger firms only interpersonal trust matters.

scholarly journals Does Corruption Lead to Lower Subnational Credit Ratings? Fiscal Dependence, Market Reputation, and the Cost of Debt

2021 ◽  
pp. 1-19
Author(s):  
Maciej Sychowiec ◽  
Monika Bauhr ◽  
Nicholas Charron
Keyword(s):  
Credit Ratings ◽  
National Level ◽  
Negative Relationship ◽  
Cost Of Debt ◽  
Economic Implications ◽  
Sovereign Credit Ratings ◽  
Heterogeneous Effects ◽  
Federal Revenue ◽  
Negative Effect ◽  
Using Data

Abstract While studies show a consistent negative relationship between the level of corruption and range indicators of national-level economic performance, including sovereign credit ratings, we know less about the relationship between corruption and subnational credit ratings. This study suggests that federal transfers allow states with higher levels of corruption to retain good credit ratings, despite the negative economic implications of corruption more broadly, which also allows them to continue to borrow at low costs. Using data on corruption conviction in US states and credit ratings between 2001 and 2015, we show that corruption does not directly reduce credit ratings on average. We find, however, heterogeneous effects, in that there is a negative effect of corruption on credit ratings only in states that have a comparatively low level of fiscal dependence on federal transfers. This suggest that while less dependent states are punished by international assessors when seen as more corrupt, corruption does not affect the ratings of states with higher levels of fiscal dependence on federal revenue.

Closer to the state, closer to the polls? The different impact of corruption on turnout among public employees and other citizens

2018 ◽  
Vol 40 (5) ◽  
pp. 659-675 ◽  
Author(s):  
Sabina Haveric ◽  
Stefano Ronchi ◽  
Laura Cabeza
Keyword(s):  
Survey Data ◽  
Negative Relationship ◽  
The Political ◽  
World Values Survey ◽  
Public Employees ◽  
Relevant Question ◽  
Employment Sector ◽  
Negative Effect ◽  
The Government ◽  
Political Success

Research on the link between turnout and corruption has produced inconclusive evidence: while some studies find corruption to be positively related to turnout, others report a negative relationship. This article argues that the relevant question is not whether corruption has a positive or negative effect on turnout, but for whom. We hypothesize that the effect of corruption on the likelihood to vote depends on individuals’ employment sector. Public employees have different incentives to vote in corrupt settings since their jobs often depend on the political success of the government of the day. Hence, while corruption dampens turnout among ordinary citizens, public employees are more likely to vote in highly corrupt countries. Analysis of World Values Survey data from 44 countries, shows that the differential in voting propensity between public employees and other citizens gets larger as corruption increases, partially confirming our expectations.

scholarly journals Tree-Ring Growth of Larch (Larix decidua Mill.) in the Polish Sudetes—The Influence of Altitude and Site-Related Factors on the Climate–Growth Relationship

Forests ◽  
2018 ◽  
Vol 9 (11) ◽  
pp. 663 ◽  
Author(s):  
Małgorzata Danek ◽  
Monika Chuchro ◽  
Adam Walanus
Keyword(s):  
Tree Ring ◽  
Climatic Factors ◽  
Negative Relationship ◽  
Thermal Conditions ◽  
Cambial Activity ◽  
Negative Influence ◽  
Larix Decidua ◽  
Related Factors ◽  
Local Conditions ◽  
Negative Effect

In this paper, the first study of a regional character on the influence of climatic factors on the tree-ring growth of European larch (Larix decidua Mill.) growing in the Polish Sudetes is presented. The obtained results indicate the relatively high diversity of the climatic signal observed in the tree rings of larches growing in the Sudetes. The most significant differentiating factor is altitude. The results suggest that the possible influence of local conditions (e.g., summit proximity, soil and bedrock characteristics, and exposure to strong winds) could also be of importance. A positive relationship between tree-ring growth and May temperatures was noted throughout the area; this indicates the principal importance of thermal conditions during the initial stage of cambial activity and tree-ring formation in larches from the Sudetes. The negative effect of the temperatures in the previous summer upon the tree-ring growth of larch in the subsequent year was also observed. The studies also indicate the negative influence of the water stress in summer (particularly in July of the previous year) upon the growth of trees. The negative relationship between tree-ring growth and the previous November temperature could be explained by the need for a late-autumn cooling, which affects the development of assimilation apparatus in spring of the subsequent year, which indirectly affects the tree-ring growth in the same year.

scholarly journals Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners’ Tax Scheme in Denmark *

2013 ◽  
Vol 129 (1) ◽  
pp. 333-378 ◽  
Author(s):  
Henrik Jacobsen Kleven ◽  
Camille Landais ◽  
Emmanuel Saez ◽  
Esben Schultz
Keyword(s):  
Wage Bargaining ◽  
Income Taxation ◽  
Tax Rate ◽  
Flat Rate ◽  
Individual Level ◽  
New Immigrants ◽  
Wage Effects ◽  
Matching Frictions ◽  
Negative Effect ◽  
The Individual

Abstract This article analyzes the effects of income taxation on the international migration and earnings of top earners using a Danish preferential foreigner tax scheme and population-wide Danish administrative data. This scheme, introduced in 1991, allows new immigrants with high earnings to be taxed at a preferential flat rate for a duration of three years. We obtain two main results. First, the scheme has doubled the number of highly paid foreigners in Denmark relative to slightly less paid—and therefore ineligible—foreigners. This translates into a very large elasticity of migration with respect to 1 minus the average tax rate on foreigners, between 1.5 and 2. Second, we find compelling evidence of a negative effect of the scheme-induced reduction in the average tax rate on pretax earnings of foreign migrants at the individual level. This finding can be rationalized by a matching frictions model with wage bargaining where there is a gap between pay and marginal productivity.

When signal swamps substance: the effects of multi-unit discount’s positive and negative cues on sales

2017 ◽  
Vol 26 (7) ◽  
pp. 750-758
Author(s):  
Devon DelVecchio ◽  
Timothy B. Heath ◽  
Max Chauvin
Keyword(s):  
Laboratory Experiment ◽  
Single Unit ◽  
Design Methodology ◽  
Unit Price ◽  
Negative Effects ◽  
Volume Increase ◽  
Content Type ◽  
Perishable Goods ◽  
Negative Effect ◽  
Purchase Quantity

Purpose Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products. Design/methodology/approach The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products. Findings The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods. Originality/value This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.

Stock market development and income inequality

2017 ◽  
Vol 44 (1) ◽  
pp. 87-98 ◽  
Author(s):  
Athanasios Tsagkanos
Keyword(s):  
Income Inequality ◽  
Stock Market ◽  
Low Income ◽  
Negative Relationship ◽  
Market Development ◽  
Rate System ◽  
Content Type ◽  
Stock Market Development ◽  
Tax Rate ◽  
Indirect Relationship

Purpose The purpose of this paper, in contrast to other studies, is to examine an indirect relationship in terms of the effect of income inequality with stock market development in countries South of the Euro-zone during the period 2002-2013. Design/methodology/approach The author adopts a new econometric method, the Improved Augmented Regression Method, to obtain bias-reduced and stationary-corrected estimators. Findings The results reveal a negative relationship that puts into doubt the recovery of growth. Originality/value The new econometric methodology leads to a novel suggested policy on the need for reforms adopting a low-income tax rate system and reinforcement of export-oriented productivity. This conclusion is strengthened by the respective relationship in USA.

scholarly journals Analysis of juvenile North Atlantic albacore (Thunnus alalunga) catch per unit effort by surface gears in relation to environmental variables

2005 ◽  
Vol 62 (7) ◽  
pp. 1475-1482 ◽  
Author(s):  
Nicolas Goñi ◽  
Haritz Arrizabalaga
Keyword(s):  
North Atlantic ◽  
Environmental Variables ◽  
Negative Relationship ◽  
Generalized Least Squares ◽  
Catch Per Unit Effort ◽  
Seasonal Thermocline ◽  
Unit Effort ◽  
Negative Effect ◽  
Thunnus Alalunga ◽  
Age Structured

Abstract The relationship between the catch per unit effort (cpue) of trolling and baitboat fisheries targeting juvenile North Atlantic albacore (Thunnus alalunga, Bonnaterre, 1788) and several environmental variables was studied. A multiple linear regression and a generalized least squares model (GLS) showed a significant negative relationship between age 2 albacore trolling and baitboat cpue, and the average agitation of the sea and the duration of insolation. No clear relationship was found between the juvenile albacore cpue and sea surface temperature, precipitation, and NAO or Gulf Stream Index. Underlying processes that could explain the negative effect of agitation and insolation are discussed, especially relating to the habitat of age 2 albacore above the seasonal thermocline. Results highlight the necessity of considering environmental variables in the standardization of albacore cpue series used for calibrating age-structured stock assessments.

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