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Economic Situations and Social Distance: Taxation and Donation

By Alexander Brandt

Abstract:

This experimental study evaluated the effects of two common economic situations –
taxation and donation – on the social distance between participants in the situations, an original
effect of interest that is the opposite of prior research. This study employed a novel survey
framework, in which subjects gave money to others in the economic situations and socially
judged recipients of their money. Findings mostly did not support predictions that the economic
situations would differently affect social distance, but the novel framework enabled an effective
test of the effect of economic situations on social distance and is a major contribution to the field.

Professor Rachel E. Kranton, Faculty Advisor
Professor Scott A. Huettel, Faculty Advisor
Professor Grace Kim, Seminar Advisor

JEL classification: C91; D64; D89; D90

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