More than Meets the Eye? Demand for Redistribution under Incomplete Information

The canonical Romer-Roberts-Meltzer-Richard model predicts the demand for redistribution will grow as income in-equality increases. This contribution proposes the visibility of social policies intermediates in this relationship, and argues how perception of government may shape demand for taxation. We analytically argue underestimating bene-fits from government to be theoretically equivalent to overestimating one’s position in the income distribution, and using this insight to test whether support for redistribution decreases compared to voters with complete information. Predictions are tested on American (GSS), Dutch (LISS) and German (SOEP) data, and show the information aspect to be a main determinant of preferences for redistribution across a wide range of income classes.