Sleep and redistribution preferences: Considering allowable tax rates

TL;DR

This paper investigates how sleep duration and quality influence individuals' preferences for redistribution and allowable tax rates, revealing complex relationships including an inverted U-shape and income-based differences.

Contribution

It introduces a novel analysis linking sleep patterns to redistribution preferences using survey data and regression models, highlighting the role of sleep in economic decision-making.

Findings

Optimal sleep correlates with highest allowable tax rate.

High-quality sleep increases support for redistribution.

Higher income individuals show stronger sleep-tax preference link.

Abstract

This study explored the association between sleep duration and redistribution preferences. Using an online survey, we propose a hypothetical situation in which the tax paid directly by respondents is redistributed to those earning less than one-fifth of the respondents' income. Next, we asked about the allowable tax rates. We found the following through Tobit and ordered logit regression estimations: (1) The relationship between sleep hours and the allowable tax rate showed an inverted U-shape, where the optimal amount of sleep led to the highest allowable tax rate. (2) High-quality sleep was more positively correlated with the allowable tax rate than was low-quality sleep when the sleep quantity was the same. (3) Sleep hours were more significantly and positively correlated with the allowable tax rate in the high-income group than in the low-income group. (4) Assuming that twice the amount of tax paid goes to those with lower income, individuals who previously preferred a higher tax rate were more likely to increase the allowable tax rate.