The Role of Social Identity on Preferences for Redistribution

Abstract:

The overall goal of the action is to understand and uncover the role of social identity on the formation of preferences for redistribution. The fellowship will be carried out at the University of California, Los Angeles for 24 months and at the University of Cyprus for 12 months. The research objectives of the proposed research are twofold: (1) Investigate the effect of social identity on preferences for redistribution and (2) Investigate the existence of multiple regimes and parameter heterogeneity on preferences for redistribution.

To achieve Objective 1 the fellow will employ social interaction models using innovative parametric and nonparametric techniques allowing for endogeneity in order to capture the high-dimensionality of social identity, aiming to identify the social factors that determine preferences for redistribution and a broader range of socioeconomic attitudes and beliefs. To reach Objective 2 the fellow will use novel econometric methodologies such as threshold regression models that account for social factors and account for the endogeneity of the threshold variable, aiming to identify a set of threshold variables that classify preferences for redistribution into various regimes based on individual, belief, and social heterogeneity. 

The fellowship will result in high quality research as well as targeted policy papers aimed at eliminating several negative social phenomena, impacting the academic community, the Cypriot and European policy makers and the general public. The fellowship will have a multidimensional impact on the fellow’s current and future academic career. It will advance his research knowledge and skills, improve his teaching abilities, build a network for future collaborations, novel ideas and high quality research, become more independent in his work, and gain critical project management skills.