Group Loyalty and the Taste for Redistribution

@article{Luttmer2001GroupLA,
  title={Group Loyalty and the Taste for Redistribution},
  author={Erzo F. P. Luttmer},
  journal={Journal of Political Economy},
  year={2001},
  volume={109},
  pages={500 - 528}
}
Interpersonal preferences—preferences that depend on the characteristics of others—are typically hard to infer from observable individual behavior. As an alternative approach, this paper uses survey data to investigate interpersonal preferences. I show that self‐reported attitudes toward welfare spending are determined not only by financial self‐interest but also by interpersonal preferences. These interpersonal preferences are characterized by a negative exposure effect—individuals decrease… 

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