Quotation Paetzel, Fabian, Sausgruber, Rupert, Traub, Stefan. 2014. Social Preferences and Voting on Reform: An Experimental Study. European Economic Review 70, 36-50.




Debating over efficiency-enhancing but inequality-increasing reforms accounts for the routine business of democratic institutions. Fernandez and Rodrik (1991) hold that anti-reform bias can be attributed to individual-specific uncertainty regarding the distribution of gains and losses resulting from a reform. In this paper, we experimentally demonstrate that anti-reform bias arising from uncertainty is mitigated by social preferences. We show that, paradoxically, many who stand to lose from reforms vote in favor because they value efficiency, while many who will potentially gain from reforms oppose them due to inequality aversion.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Economic Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-A, WH-B
Language English
Title Social Preferences and Voting on Reform: An Experimental Study
Volume 70
Year 2014
Page from 36
Page to 50
Reviewed? Y
URL http://www.sciencedirect.com/science/article/pii/S0014292114000531
DOI http://dx.doi.org/10.1016/j.euroecorev.2014.03.010
JEL C92, D72, D80


Experimental Investigations of Labor Markets
Sausgruber, Rupert (Details)
Paetzel, Fabian
Traub, Stefan
Department of Economics (Sausgruber) (Details)
Department of Economics DP (Details)
Research Institute for International Taxation FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5311 Public finance (Details)
5325 Political economics (Details)
5351 Public economy (Details)
Google Scholar: Search