Growth and inequality in public good provision

• 成果类型: Article
• 署名作者: Gaechter, Simon; Mengel, Friederike; Tsakas, Elias; Vostroknutov, Alexander
• 署名单位: University of Nottingham; University of Essex; Maastricht University; University of Trento; Leibniz Association; Ifo Institut; IZA Institute Labor Economics
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2017.03.002
• 发表日期: 2017
• 页码: 1-13
• 关键词: Public goods; INEQUALITY; GROWTH; experiment; COOPERATION; Free riding; PUNISHMENT

摘要

In a novel experimental design, we study public good games with dynamic interdependencies, where each agent's wealth at the end of period t serves as her endowment in t+1. In this setting, growth and inequality arise endogenously allowing us to address new questions regarding their interplay and effect on cooperation. We find that amounts contributed are increasing over time even in the absence of punishment possibilities. Variation in wealth is substantial with the richest groups earning more than ten times what the poorest groups earn. Introducing the possibility of punishment does not increase wealth and in some cases even decreases it. In the presence of a punishment option, inequality in early periods is strongly negatively correlated with group income in later periods, highlighting negative interaction effects between endogenous inequality and punishment. (C) 2017 The Authors. Published by Elsevier B.V.