Overconfident and underconcerned

Behavioral biases in redistribution attitudes

Bibliographic Data

ID6045485
AuthorsYuyan Wang (0000-0003-3747-0762, Central University of Finance and Economics), Wei Xu (0000-0002-4727-1540, Central University of Finance and Economics), Xu Wei (0000-0001-7977-4487), Xiao (0009-0006-3429-1506), Xiao Xiao (0000-0002-3875-8496, Wuhan College, corresponding author), Yi Zhou (0000-0001-6130-687X, Peking University)
Year2025
Volume5
Issue2
Pages120-131
Publication date2025-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueChina Economic Quarterly International (JOURNAL)
Journal identifiersISSN: 2666-9331 • E-ISSN: 2666-9331
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ceqi.2025.05.001
OpenAlexW4411054976
LanguageEN
References cited33

This study examines how overconfidence shapes individuals' preference for redistribution. We contend that overconfidence inflates individuals' income expectations, which reduces the perceived benefits of redistribution for these individuals and thereby weakens their preference for such policies. Using data from the 2014 China Family Panel Studies, we find that overconfident individuals are more confident in their future life and exhibit less concerns for economic inequality, healthcare, and social security issues—key proxies for preference for redistribution. These results are more pronounced among less wealthy individuals. In addition, our results remain unchanged after controlling for individuals' trust in government and risk preference. These findings highlight the role of biased belief in shaping individuals’ attitude toward redistribution, offering new insights for discussions on redistributive policies

Cognitive psychology · Overconfidence effect · Political science · Employment and Welfare Studies · Financial Literacy, Pension, Retirement Analysis · Psychology · Social Policy and Reform Studies · Social Psychology

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