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. © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license

Growth and Inequality in Public Good Provision / Gächter, S.; Mengel, F.; Tsakas, E.; Vostroknutov, A.. - In: JOURNAL OF PUBLIC ECONOMICS. - ISSN 0047-2727. - 150:(2017), pp. 1-13.

Growth and Inequality in Public Good Provision

Vostroknutov A.
2017-01-01

Abstract

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. © 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license
2017
Gächter, S.; Mengel, F.; Tsakas, E.; Vostroknutov, A.
Growth and Inequality in Public Good Provision / Gächter, S.; Mengel, F.; Tsakas, E.; Vostroknutov, A.. - In: JOURNAL OF PUBLIC ECONOMICS. - ISSN 0047-2727. - 150:(2017), pp. 1-13.
File in questo prodotto:
File Dimensione Formato  
GMTV-paper-2017-02-24-Main.pdf

accesso aperto

Tipologia: Post-print referato (Refereed author’s manuscript)
Licenza: Creative commons
Dimensione 486.19 kB
Formato Adobe PDF
486.19 kB Adobe PDF Visualizza/Apri
1-s2.0-S0047272717300361-main.pdf

accesso aperto

Tipologia: Versione editoriale (Publisher’s layout)
Licenza: Creative commons
Dimensione 1.25 MB
Formato Adobe PDF
1.25 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/220727
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
  • OpenAlex ND
social impact