Growth and inequality in public good provision
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 eff...
| Main Authors: | , , , |
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| Format: | Article |
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Elsevier
2017
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| Online Access: | https://eprints.nottingham.ac.uk/41669/ |
| _version_ | 1848796327473840128 |
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| author | Gaechter, Simon Mengel, Friederike Tsakas, Elias Vostroknutov, Alexander |
| author_facet | Gaechter, Simon Mengel, Friederike Tsakas, Elias Vostroknutov, Alexander |
| author_sort | Gaechter, Simon |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T19:46:13Z |
| format | Article |
| id | nottingham-41669 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:46:13Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-416692020-05-04T19:56:56Z https://eprints.nottingham.ac.uk/41669/ Growth and inequality in public good provision Gaechter, Simon Mengel, Friederike Tsakas, Elias Vostroknutov, Alexander 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. Elsevier 2017-06 Article PeerReviewed Gaechter, Simon, Mengel, Friederike, Tsakas, Elias and Vostroknutov, Alexander (2017) Growth and inequality in public good provision. Journal of Public Economics, 150 . pp. 1-13. ISSN 0047-2727 https://www.sciencedirect.com/science/article/pii/S0047272717300361 doi:10.1016/j.jpubeco.2017.03.002 doi:10.1016/j.jpubeco.2017.03.002 |
| spellingShingle | Gaechter, Simon Mengel, Friederike Tsakas, Elias Vostroknutov, Alexander Growth and inequality in public good provision |
| title | Growth and inequality in public good provision |
| title_full | Growth and inequality in public good provision |
| title_fullStr | Growth and inequality in public good provision |
| title_full_unstemmed | Growth and inequality in public good provision |
| title_short | Growth and inequality in public good provision |
| title_sort | growth and inequality in public good provision |
| url | https://eprints.nottingham.ac.uk/41669/ https://eprints.nottingham.ac.uk/41669/ https://eprints.nottingham.ac.uk/41669/ |