morten.stostad [at] nhh.no
morten.stostad [at] nhh.no
Morten Nyborg Støstad
Post-doctoral Scholar at the FAIR Institute (NHH), 2023-27
Welcome to my personal website. I am currently a post-doctoral scholar at the FAIR Institute at the Norwegian School of Economics (NHH). I have previously been a Lecturer at UC Berkeley (Spring '24), and received my PhD in Economics from the Paris School of Economics in 2023. I am a Fellow at the World Inequality Database. In Spring 2025, I won NHH's Prize for Outstanding Teaching in a Master's course.
My main research focus is inequality's societal effects, or the concept of inequality as an externality. I use theoretical and empirical methods to examine this and other subjects.
Before Economics I studied Astrophysics, and published papers on the young stellar disk orbiting the super-massive black hole Sagittarius A* with a team of internationally renowned researchers. My astronomy research has been cited in Science, Nature Astronomy, the Astrophysical Journal, and more.
Selected Work
The Consequences of Inequality: Beliefs and Redistributive Preferences
Max Lobeck, Morten Nyborg Støstad
Revise and resubmit, American Economic Review
Full paper (Alternate link)
Abstract: Using two large-scale studies in the United States we document widespread public agreement that inequality leads to negative societal consequences, for example by increasing crime (74%), harming democratic institutions (57%), and weakening economic growth (52%). An information experiment establishes causal evidence that such inequality externality beliefs substantially influence redistributive preferences, with an importance approaching that of economic fairness views. Inequality externality beliefs are less polarized across income levels and political affiliations than fairness views, and have a particularly strong influence on high-income individuals. Our results demonstrate that these previously undocumented beliefs constitute a key determinant of redistributive preferences.
Publications (Economics)
Inequality as an Externality: Consequences for Tax Design
Morten Nyborg Støstad, Frank Cowell (Journal of Public Economics #105139, open access)
Non-technical summary, Slides (UC Berkeley Public Finance seminar)
Abstract: Economic inequality may affect a wide range of societal outcomes, for example crime rates, economic growth, and political polarization. In this paper we discuss how to model such effects in welfarist frameworks. Our main suggestion is to treat economic inequality itself as an externality, which has wide-ranging implications for classical economic theory. We show this through the Mirrlees (1971) optimal non-linear income taxation model, where we focus on a post-tax income inequality externality. Optimal top marginal tax rates are particularly affected by the externality, implying a novel equality dimension to optimal top tax rate design. We propose that inequality's externality properties may have larger optimal top tax rate implications than standard revenue concerns; our model thus provides a theoretical basis for real-world governmental tax choices that seem irrational under standard optimal taxation models. We also show that the total inequality aversion implied by the current U.S. tax system is insufficient to accommodate both social welfare weights that are decreasing in income and a significant concern for inequality's externality effects.
Publications (Astronomy)
“Mapping the Outer Edge of the Young Stellar Cluster in the Galactic Center” -- Støstad et al., the Astrophysical Journal, Vol. 808, Article 106, 2015.
“Discovery of Low-Metallicity Stars in the Central Parsec of the Milky Way” -- Do et al., the Astrophysical Journal, Vol. 809, Article 143, 2015.
Working papers
Comparing Universes of Redistributive Arguments
Max Lobeck, Chloé de Meulenaer, Morten Nyborg Støstad
(Working paper on request)
Abstract: How do Americans argue in favor of redistribution, and which arguments actually persuade listeners? Using natural language processing, the full database of U.S. Congressional speeches from 2015–2022, and a survey experiment, we explore how arguments in favor of redistribution vary in content and audience reaction. We contrast fairness-based arguments with those that stress the harmful consequences of inequality ("inequality externalities"). Fairness arguments are much more common, divisive, and operate through emotions, while externality arguments are more likely to appeal to logic while seeking consensus. Although fairness arguments elicit greater outrage, they are not significantly more persuasive on average. We find evidence of an educational divide, as fairness arguments are more persuasive for less educated respondents, while externality arguments are more commonly used by highly educated legislators. Our results establish these two types of redistributive arguments as functionally different, with potentially large ramifications for the redistributive debate.
Self-Preserving Redistribution: Global Experimental Evidence
Morten Nyborg Støstad
(Working paper on request)
Abstract: This paper introduces a theory of popular support for inequality reduction, offering a framework for understanding how stable, low-inequality societies can emerge and endure. In a controlled experiment across 40 countries and almost 90,000 respondents I isolate altruistic and self-preserving transfers. A significant number of non-altruistic individuals engage in self-preserving transfers to protect themselves from inequality's negative effects. Altruistic redistribution is prevalent across the world but not associated to societal markers for redistribution. Self-preserving redistribution, on the other hand, is a strong predictor of societal redistribution, and is particularly common in the Nordic countries. The findings suggest that differing beliefs about inequality's negative consequences, rather than normative fairness ideals, may explain cross-country variation in redistributive systems.
The Threat of Unfair Equality: An Experiment Across 40 Countries
Alexander Cappelen, Morten Nyborg Støstad, Bertil Tungodden
(Working paper on request)
Abstract: What are the distinct effects of unfairness and inequality? We conduct a large-scale experiment across 40 countries with almost 45,000 participants to examine this question. Using exogenous variation in payoffs and effort, we create four experimental conditions: fair equality, fair inequality, unfair equality, and unfair inequality. Across treatments, we measure participants’ willingness to impose negative externalities on others to maximize their own payoffs, as well as their beliefs about others' actions in similar situations. The results suggest that both unfairness and inequality independently increase the presence of negative externalities, with the strongest effect appearing under conditions of unfair equality — a result consistent across countries. Participants’ beliefs reflect an accurate understanding of how unfairness and inequality impact others within their country, though effect sizes are underestimated. Finally, we show that elicited beliefs in the experiment predict people’s beliefs about how unfairness and inequality generate negative externalities in society. This study provides global evidence on the distinct roles of unfairness and inequality in causing negative societal consequences and assesses the accuracy of people's beliefs about these effects.
Fairness Beliefs Affect Perceived Economic Inequality
Morten Nyborg Støstad
Working paper here, Slides (UC Berkeley Public Finance Seminar)
Abstract: This paper establishes a causal link from fairness beliefs to perceived economic inequality. I conduct an experiment where participants are asked to estimate the level of income inequality in a hypothetical society. Respondents are informed of the true income distribution, which is simple and identical across treatments. Sources of incomes vary to indicate “fair” or “unfair” inequality, which affects incentivized top 10% income share estimates as much as the difference between Denmark and the United States. Other inequality metrics are similarly affected. The findings imply that ideological beliefs fundamentally alter how people perceive economic inequality.
Other work in progress
Majority in 40 Countries Support Unprecedented Coordinated Billionaire Tax Discussed by G20 (with Cappelen & Tungodden)
Global Inequality Externality Beliefs (with Izumi & Støeng)
A Theory of Fixed and Growing Pies (solo-authored)
Various Twitter / Media
VoxEu: The Power of Treating Inequality as an Externality
Twitter: Do people become conservative with age? An update with 21 countries and 546,013 individuals.
Twitter: The gender gap in young people's ideology across the developed world; 126,072 individuals in 21 developed countries (Used in the Financial Times)
Twitter: In which countries did income inequality decrease the most between 2007 and 2021?
Twitter: In which countries did income inequality increase the most between 2007 and 2021?
Congratulations on finding this. Note: "Morten Stostad" is also fine.