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Taxed fairly?
(2023)
Empirically, the poor are more likely to support increases in the level of tax progressivity than the rich. Such income-stratified tax preferences can result from differences in preferences of what should be taxed as argued by previous literature. However, it may also result from income-stratified perceptions of what is taxed. This paper argues that the rich perceive higher levels of tax progressivity than the poor and that tax perceptions affect individuals’ support for progressive taxation. Using data from an Austrian survey experiment, we test this argument in three steps: First, in line with past research, we show that individuals’ income positions are connected to individuals’ tax preferences as a self-interest rationale would predict. However, second, we show that this variation is mainly driven by income-stratified tax perceptions. Third, randomly informing a subset of the sample about actual tax rates, we find that changing tax perceptions causally affects support for redistributive taxation among those who initially overestimated the level of tax progressivity. Our results indicate that tax perceptions are relevant for forming tax preferences and suggest that individuals are more polarized in their perceptions of who pays how much taxes than in their support for who should pay how much tax.
Studies conducted in Bangladesh so far did not unequivocally identify the modus operandi of local farmers to perceive and experience the climate variability at a national scale. Hence, this study aims to decipher local farmer's perception on climate variability for the last 10 years, by constructing climate variability index (CVI). Additionally, this study demystified the socio-economic determinants for influencing farmer perception regarding climate variability as well as its impact on their livelihoods. The study was designed on a cross-sectional data through a country-wide primary survey of 16,053 households who were largely dependent on agriculture. A weighted index was constructed for mapping the regional climate variability using model-builder programming in ArcGIS. Also, a multivariable probit model was employed to identify the factors influencing farmers' perception and resulting impact of climate variability on their livelihoods. According to local farmer's perception, the CVI mapping identified that Bangladesh experienced variegated climatic variability since last 10 years. However, local farmer's perception varied with different socio-economic factors like gender, education, farmer's category, credit, monthly income and access to media. Moreover, landless, small and medium farm holders were more aware of the local climate variability and eventually, they also experienced the higher influence of climate variability on their livelihoods. Since an effective mapping of regional climate variability is a sine qua non to devise region specific policies, this study will facilitate the government to determine its priorities, formulate efficacious strategies and thereby help to adapt with future climate-induced risks and vulnerabilities.
Background: Following the rapid increase of asylum seekers arriving in the European Union in 2015/16, policymakers have invested heavily in improving their foresight and forecasting capabilities. A common method to elicit expert predictions are Delphi surveys. This approach has attracted concern in the literature, given the high uncertainty in experts’ predictions. However, there exists limited guidance on specific design choices for future-related Delphi surveys.
Objective: We test whether or not small adjustments to the Delphi survey can increase certainty (i.e., reduce variation) in expert predictions on immigration to the EU in 2030.
Methods: Based on a two-round Delphi survey with 178 migration experts, we compare variation and subjective confidence in expert predictions and assess whether additional context information (type of migration flow, sociopolitical context) promotes convergence among experts (i.e., less variation) and confidence in their own estimates.
Results: We find that additional context information does not reduce variation and does not increase confidence in expert predictions on migration.
Conclusions: The results reaffirm recent concerns regarding the limited scope for reducing uncertainty by manipulating the survey setup. Persistent uncertainty may be a result of the complexity of migration processes and limited agreement among migration experts regarding key drivers.
Contribution: We caution policymakers and academics on the use of Delphi surveys for eliciting expert predictions on immigration, even when conducted based on a large pool of experts and using specific scenarios. The potential of alternative approaches such as prediction markets should be further explored.
We conduct a laboratory experiment to study how locus of control operates through people’s preferences and beliefs to influence their decisions. Using the principal–agent setting of the delegation game, we test four key channels that conceptually link locus of control to decision-making: (i) preference for agency, (ii) optimism and (iii) confidence regarding the return to effort, and (iv) illusion of control. Knowing the return and cost of stated effort, principals either retain or delegate the right to make an investment decision that generates payoffs for themselves and their agents. Extending the game to the context in which the return to stated effort is unknown allows us to explicitly study the relationship between locus of control and beliefs about the return to effort. We find that internal locus of control is linked to the preference for agency, an effect that is driven by women. We find no evidence that locus of control influences optimism and confidence about the return to stated effort, or that it operates through an illusion of control.
Zahedi, Anoushiravan ; Öznur Akalin, Renin ; Lawrence, Johanna E. ; Baumann, Annika ; Sommer, Werner
Food preferences are crucial for diet-related decisions, which substantially impact individual health and global climate. However, the persistence of unfavorable food preferences is a significant obstacle to changing eating behavior.
Here we explored the effects of posthypnotic suggestions (PHS) on food-related decisions by measuring food choices, subjective ratings, and indifference points. In Session 1, demographic data and hypnotic susceptibility of participants were assessed. In Session 2, following hypnosis induction, PHS aiming to increase the desirability of healthy food was delivered.
Afterward, a task set was administrated twice, once when PHS was activated and once deactivated. The order of PHS activation was counterbalanced across participants. The task set included a liking-rating task for 170 pictures of different food items, followed by an online supermarket where participants were instructed to select enough food for a fictitious week of quarantining from the same item pool. After 1 week, Session 3 repeated Session 2 without hypnosis induction in order to assess the persistence of PHS.
The crucial dependent measures were food choices, subjective ratings, and the indifference points as a function of time and PHS condition.
We study the effect of energy and transport policies on pollution in two developing country cities. We use a quantitative equilibrium model with choice of housing, energy use, residential location, transport mode, and energy technology. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for two developing country cities, Maputo, Mozambique, and Yogyakarta, Indonesia. In the counterfactual simulations, we study how various transport and energy policies affect equilibrium pollution. Policies may be induce rebound effects from increasing residential energy use or switching to high emission modes or locations. In general, these rebound effects tend to be largest for subsidies to public transport or modern residential energy technology.
While the economic harm of cartels is caused by their price-increasing effect, sanctioning by courts rather targets at the underlying process of firms reaching a price-fixing agreement. This paper provides experimental evidence on the question whether such sanctioning meets the economic target, i.e., whether evidence of a collusive meeting of the firms and of the content of their communication reliably predicts subsequent prices. We find that already the mere mutual agreement to meet predicts a strong increase in prices. Conversely, express distancing from communication completely nullifies its otherwise price-increasing effect. Using machine learning, we show that communication only increases prices if it is very explicit about how the cartel plans to behave.