Income inequality, reciprocity and public good provision: an experimental analysis

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Periodical article

Title:	Income inequality, reciprocity and public good provision: an experimental analysis
Authors:	Hofmeyr, Andre Burns, Justine Visser, Martine
Year:	2007
Periodical:	South African Journal of Economics
Volume:	75
Issue:	3
Pages:	508-520
Language:	English
Geographic term:	South Africa
Subjects:	income distribution economic behaviour values
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2007.00127.x/pdf
Abstract:	This paper analyses the impact of income inequality on public good provision in an experimental setting. Eighty secondary-school children were recruited from Khayelitsha in the Western Cape of South Africa to participate in a simple linear public goods game where income heterogeneity was introduced by providing participants with unequal token endowments. The results show that endowment heterogeneity does not have any significant impact on contributions to the public good, and that consistent with models of reciprocity, low and high endowment players contribute the same fraction of their endowment to the public pool. Moreover, individuals appear to adjust their contributions in order to maintain a fair share rule. Bibliogr., notes, ref., sum. [Journal abstract]