How Did Distributional Preferences Change During the Great Recession? / Raymond Fisman, Pamela Jakiela, Shachar Kariv.

Format:

Book

Author/Creator:

Fisman, Raymond.

Contributor:

National Bureau of Economic Research.

Jakiela, Pamela.

Kariv, Shachar.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20146.

NBER working paper series no. w20146

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

We compare behavior in experiments measuring distributional preferences during the "Great Recession" to behavior in identical experiments conducted during the preceding economic boom. Subjects are drawn from a diverse pool of students whose socioeconomic composition is largely held constant by the university, mitigating concerns about differential selection across macroeconomic conditions. Subjects exposed to the recession are more selfish and more willing to sacrifice equality to enhance efficiency. Reproducing recessionary conditions inside the laboratory by confronting subjects with losses has the same impact on distributional preferences, bolstering the interpretation that economic circumstances, rather than other factors, are driving our results.

Notes:

Print version record

May 2014.