Saint-Paul, Gilles; Ticchi, Davide; Vindigni, Andrea - Collegio Carlo Alberto, Università degli Studi di Torino - 2014
We develop a theory of endogenous political entrenchment in a simple two-party dy- namic model of income redistribution … with probabilistic voting. A partially self-interested left-wing party may implement (entrenchment) policies reducing the …-wing party. We demonstrate that political entrenchment by the Left occurs only if incumbency rents are sufficiently high and that …