Skip to main content

2007-04-23 | Peer Reviewed

Income Inequality, Reciprocity and Public Goods Provision

Burns, Justine, Andre Hofmeyr and Martine Visser. 2007. “Income Inequality, Reciprocity and Public Goods Provision.” South African Journal of Economics 75:3: 508-520.
Download reference

This paper analyses the impact of income inequality on public good provision in an experimental setting. A sample of secondary school students were recruited to participate in a simple linear public goods game where income heterogeneity was introduced by providing participants with unequal token endowments.

This paper analyses the impact of income inequality on public good provision in an experimental setting. A sample of secondary school students were recruited 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