Redistribution and Group Participation: Experimental Evidence from Africa and the UK
@article{Fafchamps2018RedistributionAG, title={Redistribution and Group Participation: Experimental Evidence from Africa and the UK}, author={Marcel Fafchamps and Ruth Vargas Hill}, journal={World Bank Policy Research Working Paper Series}, year={2018} }
This paper investigates whether the prospect of redistribution hinders the formation of efficiency-enhancing groups. An experiment is conducted in a Kenyan slum, Ugandan villages, and a UK university town and used to test, in an anonymous setting with no feedback, whether subjects join a group that increases their endowment but exposes them to one of three redistributive actions: stealing, giving, or burning. Exposure to redistributive options among group members operates as a disincentive to…
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