The research examines how people’s attitudes toward taxation and government size shift once they gain a clearer understanding of the universal benefits of public goods. Led by Associate Professor Tomoko Matsumoto of Tokyo University of Science, together with Associate Professors Daiki Kishishita and Atsushi Yamagishi of Hitotsubashi University, the team set out to explore whether better public awareness of services such as sanitation and transport infrastructure could influence political preferences. Their findings reveal that when individuals are presented with concrete information about the value of these public goods, support for expanding government—particularly through higher taxation—rises significantly, even without altering views on tax progressivity. This discovery offers a potential pathway for reducing inequality by broadening the scale of government investment while preserving a progressive fiscal structure.

To test this idea, the researchers conducted an online experiment in July 2021 involving around 3,000 participants from across the United States. The U.S. served as a fertile testing ground due to its high levels of political polarisation and comparatively small government size among developed countries. Participants were randomly divided into two groups, one of which received detailed information outlining the government’s role in maintaining public goods, including cost, efficiency, and direct personal benefits. The other group served as a control and received no such information. By comparing responses between these groups, the researchers were able to isolate the influence of increased understanding on political and fiscal attitudes.

The results were particularly striking regarding support for a larger government. Participants who received information were 10 percentage points more likely to endorse a hypothetical 1% increase in the tax rate to fund expanded public services. This is a massive effect in an area where tax increases are typically met with resistance. However, attitudes toward tax progressivity, meaning whether higher earners should pay relatively more, remained essentially unchanged, with only a minor and statistically insignificant shift in opinion. Similarly, when asked how additional tax revenue should be used, the information group showed only a slight decrease in support for directing funds exclusively towards aiding people experiencing poverty. Overall support for existing welfare policies remained unaffected.

One of the most consequential findings was the consistency of these effects across social and political lines. Regardless of income, ideology, race, or gender, participants responded in broadly similar ways to information about public goods. This suggests that clearly explained shared benefits bridge entrenched divides and foster a more unified public stance on government investment. In societies where political disagreements often dominate discussions about taxation and redistribution, this outcome raises the possibility that universal public goods can serve as a foundation for broader consensus.

The broader implication of the study is that reducing inequality does not necessarily require focusing solely on traditional strategies such as increasing tax progressivity or highlighting income disparities. Instead, enhancing public awareness of universally shared services may open alternative avenues for redistribution. If citizens recognise the broad value of public goods, they may be more willing to support expansions in government activity that can promote more equitable outcomes. The researchers note that this approach aligns with the Nordic model, which places universal public goods at the core of redistribution. The study’s evidence suggests that such a model could be relevant beyond its usual geographical and cultural context.

While the findings are promising, the researchers acknowledge limitations and future directions. The results stem from a U.S.-based online survey, and further work is needed to determine how well these patterns apply elsewhere. Additional research must also explore how such shifts in opinion translate into real-world political engagement, including voting and support for specific policies. As Dr Matsumoto reflects, the ongoing rise in global inequality underscores the urgency of identifying sustainable approaches to preserving social cohesion and mutual support.

More information: Daiki Kishishita et al, Public goods provision, preferences over public finance, and distributional effects, Japanese Economic Review. DOI: 10.1007/s42973-025-00228-2

Journal information: Japanese Economic Review Provided by Tokyo University of Science