A Note on Aggregating Preferences for Redistribution
The policy predictions of standard heterogeneous agent macroeconomic models are often at odds with observed policies. We use the 2021 General Social Survey to investigate the drivers of individuals' preferences over taxes and redistribution. We find that these preferences are more strongly associated with political identity than with economic status. We discuss the implications for quantitative macroeconomic models with endogenous policy determination.
Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.
Suggested Citation
Carroll, Daniel R., André Victor D. Luduvice, and Eric R. Young. 2024. “A Note on Aggregating Preferences for Redistribution.” Federal Reserve Bank of Cleveland, Working Paper No. 24-27. https://doi.org/10.26509/frbc-wp-202427
This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
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