Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment
This paper presents the results of a revealed-choice experiment testing the theoretical predictions of political economy models regarding public support for a publicly provided private good financed with proportional income taxes when individuals can purchase the good privately and either continue t...
| Main Authors: | , , , , , |
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| Format: | Journal Article |
| Published: |
Elsevier BV * North-Holland
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/50706 |
| _version_ | 1848758522014072832 |
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| author | Buckley, N. Cuff, K. Hurley, J. Mestelman, S. Thomas, Stephanie Cameron, D. |
| author_facet | Buckley, N. Cuff, K. Hurley, J. Mestelman, S. Thomas, Stephanie Cameron, D. |
| author_sort | Buckley, N. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper presents the results of a revealed-choice experiment testing the theoretical predictions of political economy models regarding public support for a publicly provided private good financed with proportional income taxes when individuals can purchase the good privately and either continue to consume public provision (‘top-up’) or forego public provision (‘opt-out’), but in each case continue to pay income taxes. Our laboratory results confirm behavior is consistent with the predicted majority-preferred tax rate under mixed financing with top-up, but we identify preferences for significantly higher rates of public provision than predicted under mixed financing with opt-out. Using non parametric regression analysis, we explore the relationship between individuals’ top-up and opt-out decisions and both their income levels and the implemented tax rates. |
| first_indexed | 2025-11-14T09:45:19Z |
| format | Journal Article |
| id | curtin-20.500.11937-50706 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:45:19Z |
| publishDate | 2015 |
| publisher | Elsevier BV * North-Holland |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-507062018-03-06T08:00:49Z Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment Buckley, N. Cuff, K. Hurley, J. Mestelman, S. Thomas, Stephanie Cameron, D. This paper presents the results of a revealed-choice experiment testing the theoretical predictions of political economy models regarding public support for a publicly provided private good financed with proportional income taxes when individuals can purchase the good privately and either continue to consume public provision (‘top-up’) or forego public provision (‘opt-out’), but in each case continue to pay income taxes. Our laboratory results confirm behavior is consistent with the predicted majority-preferred tax rate under mixed financing with top-up, but we identify preferences for significantly higher rates of public provision than predicted under mixed financing with opt-out. Using non parametric regression analysis, we explore the relationship between individuals’ top-up and opt-out decisions and both their income levels and the implemented tax rates. 2015 Journal Article http://hdl.handle.net/20.500.11937/50706 10.1016/j.jebo.2014.12.016 Elsevier BV * North-Holland fulltext |
| spellingShingle | Buckley, N. Cuff, K. Hurley, J. Mestelman, S. Thomas, Stephanie Cameron, D. Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title | Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title_full | Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title_fullStr | Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title_full_unstemmed | Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title_short | Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment |
| title_sort | support for public provision of a private good with top-up and opt-out: a controlled laboratory experiment |
| url | http://hdl.handle.net/20.500.11937/50706 |