This paper examines the effect of income and wealth heterogeneity in the voluntary provision of a linear public good. We use models of inequality aversion and altruism to predict behavior in our setting. Our results are not consistent with these models, however; our experimental results suggest that less wealthy subjects give the same absolute amount (and more as a percentage of their income) as the more wealthy.
Bibliographical noteFunding Information:
Funding for the experiment was provided by the Decision Processes Doctoral Student Research Grant 1999. The second author's research is funded by the NSF #SBR-9876079. The authors thank Paul Kleindorfer, Dennis Yao, Don Morrison, the participants in the Business and Public Policy doctoral student seminar, participants in the Economic Science Association conference and two anonymous referees for comments and suggestions.
Copyright 2006 Elsevier B.V., All rights reserved.
- Income heterogeneity
- Linear public good