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Abstract

We use a factorial vignette design featuring negative externalities to test whether the perceived fairness of welfare transfers is susceptible to framing effects. We find that describing a welfare transfer as a “byproduct”–with benefits to the externality-generating entity and harms to the bystanders–increases fairness ratings relative to taking frames that emphasize the extractive nature of the welfare transfer. We also find that emphasizing the persistence of a welfare transfer following government intervention decreases the perceived fairness of the intervention.