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Repeated shocks and preferences for redistribution

Author

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  • Gualtieri, Giovanni
  • Nicolini, Marcella
  • Sabatini, Fabio
  • Zamparelli, Luca
Abstract
A society that believes wealth to be determined by random “luck” rather than by merit, demands more redistribution. The theoretical literature shows that any increase in the volatility of income caused by unpredictable adverse shocks implies a higher support for redistribution. We present evidence of this behavior by exploiting a natural experiment provided by the L’Aquila earthquake in 2009, which hit a large area of Central Italy through a series of destructive shakes over eight days. Matching detailed information on the ground acceleration registered during each shock with survey data about individual opinions on redistribution we show that the average intensity of the shakes is associated with subsequent stronger beliefs that, for a society to be fair, income inequalities should be levelled by redistribution. The shocks, however, are not all alike. We find that only the last three shakes - occurred on the fourth and the eighth day of the earthquake - have a statistically significant impact. Overall, we find that the timing and repetition of the shock play a role in shaping redistributive preferences. Revision posted January 24, 2019. A previous version of this paper circulated under the title “Natural disasters and demand for redistribution: lessons from an earthquake”.

Suggested Citation

  • Gualtieri, Giovanni & Nicolini, Marcella & Sabatini, Fabio & Zamparelli, Luca, 2018. "Repeated shocks and preferences for redistribution," ETA: Economic Theory and Applications 273143, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemth:273143
    DOI: 10.22004/ag.econ.273143
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    Cited by:

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    2. Fazio, Andrea, 2022. "Attractiveness and preferences for redistribution," Economics & Human Biology, Elsevier, vol. 46(C).
    3. Fabio Sabatini & Marco Ventura & Eiji Yamamura & Luca Zamparelli, 2020. "Fairness and the Unselfish Demand for Redistribution by Taxpayers and Welfare Recipients," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 971-988, January.
    4. Bellani Luna & Fazio Andrea & Scervini Francesco, 2023. "Collective negative shocks and preferences for redistribution: Evidence from the COVID-19 crisis in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 381-403, June.
    5. Miloš Fišar & Tommaso Reggiani & Fabio Sabatini & Jiří Špalek, 2022. "Media negativity bias and tax compliance: experimental evidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(5), pages 1160-1212, October.
    6. Miloš Fišar & Tommaso Reggiani & Fabio Sabatini & Jiří Špalek, 2020. "Media Bias and Tax Compliance: Experimental Evidence," MUNI ECON Working Papers 2020-01, Masaryk University, revised Feb 2023.
    7. Andrea Fazio, 2021. "Beautiful inequality: Are beautiful people more willing to redistribute?," Working Papers in Public Economics 194, Department of Economics and Law, Sapienza University of Roma.
    8. Andrea Fazio & Tommaso Reggiani, 2022. "Minimum wage and tolerance for inequality," MUNI ECON Working Papers 2022-07, Masaryk University, revised Feb 2023.
    9. Heap, Shaun Hargreaves & Koop, Christel & Matakos, Konstantinos & Unan, Asli & Weber, Nina Sophie, 2021. "Never waste a “good” crisis! Priming the economic aspect of crises fosters social capital build-up and prosociality," OSF Preprints evzbn, Center for Open Science.
    10. Maria Cotofan & Konstantinos Matakos, 2023. "Adapting or compounding? The effects of recurring labour shocks on stated and revealed preferences for redistribution," CEP Discussion Papers dp1957, Centre for Economic Performance, LSE.
    11. Cotofan, Maria & Matakos, Konstantinos, 2023. "Adapting or compounding? The effects of recurring labour shocks on stated and revealed preferences for redistribution," LSE Research Online Documents on Economics 121297, London School of Economics and Political Science, LSE Library.
    12. Yamagishi, Atsushi, 2020. "School bullying is positively associated with support for redistribution in adulthood," Economics of Education Review, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • Z1 - Other Special Topics - - Cultural Economics

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