HSE Seminar on Political Economy: Israel Marques II (HSE) about influence of institutional quality on social policy preferences.

Using laboratory experiments conducted in two countries, we examine how poor institutions influence individuals support for redistribution. Contrary to conventional expectations, we argue that high-earning individuals will prefer more redistribution when they can more easily evade taxes. To test our expectations, we conducted a series of experiments from February to May 2016 simulating earned income and tax evasion. We find that high earners do indeed prefer more redistribution when they can more easily under-report their income. Our findings make an important contribution to the little studied question of how institutional quality affects social policy preferences.

the joint seminar of Higher School of Economics on political economy, International Center for the Study of Institutions and Development (ICSID) and NES Center for the Study of Diversity and Social Interaction (NES CSDSI) was held on February 06.

Moderators: Alexei Zakharov (HSE), Konstantin Sonin (HSE, The University of Chicago Harris School of Public Policy)