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• W2186462015 abstract "In this paper we present a model of rational voting over redistribution where indi- vidual attitudes toward others are endogenously determined. Individuals dier in their productivity as well as their degree of social concern. Individuals'behavior is in‡uenced by moral standards. This means, agents determine what they take to be proper behavior and they judge others accordingly. Esteem for those who perform in excess of the norm is increased, and esteem for those who work less than the norm is decreases. This also pertains to individuals'self-esteem, which varies in relation to their own performance. As a result, the desired extent of redistribution depends both on individual income and on individual attitudes toward others, which endogenously shape political views. The model has dierent types of equilibria. In one type all individuals conform to proper behavior, income inequality is small, the social esteem for others is not biased towards any par- ticular type. Under these conditions equilibrium redistribution increases in response to larger inequality. In the other equilibria, average labor supply is larger with highly skilled workers work above the mean and are admired by everyone, while unskilled workers are considered lazy. In this equilibrium, income inequality is large and equilibrium redistri- bution may decrease in response of an increase in basic productivities. We …nd that the emergence of equilibria crucially depends on inequality, may subject to path dependence and may depend on cultural speci…cities. We contrast the US and EU social contracts in light of the predictions of the model." @default.
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• W2186462015 date "2005-01-01" @default.
• W2186462015 modified "2023-09-27" @default.
• W2186462015 title "Redistribution with Endogenous Sentiments" @default.
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