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The paper studies in a simple, Downsian model of political competition how the private provision of public goods is affected when it is embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on public goods production, which Olson...
Persistent link: https://www.econbiz.de/10013146793
), strategically promise a level of redistribution. We prove existence of a unique Nash equilibrium which is characterized by policy … convergence or divergence depending on whether candidates redistribution technologies are symmetric or not. Perhaps more … drags redistribution towards the preferred level of redistribution of the less "divided" - in terms of non …
Persistent link: https://www.econbiz.de/10012996707
We investigate the effect that social capital and social interactions may have on public policy by enabling individuals to observe one another's incomes, providing them with information about the distribution of income in the economy. Individual incomes are taxed at a flat rate that is...
Persistent link: https://www.econbiz.de/10012967628
the reasons for being poor. We develop and test a theory about support for redistribution in the presence of target …-specific beliefs about the causes of low and high incomes. Our theory predicts that target-specific beliefs about the poor matter most … welfare recipients supports our theory. We also find, in theory, the existence of a moral release equilibrium in which the …
Persistent link: https://www.econbiz.de/10012889829
We study democratization, coups and trade policy determination in an environment marked by intra-elite conflict over trade policy by taking a simple general equilibrium model of an open economy and combining it with the Acemoglu-Robinson model of democratization. Unlike the approaches taken in...
Persistent link: https://www.econbiz.de/10013132536
inequality and low redistribution can coexist. The theory's assumptions and outcomes are explored empirically using individual … outcome, this pa- per develops a theory exploring two fundamental factors at play during elections – the critical political …
Persistent link: https://www.econbiz.de/10013087890
We develop a theory of endogenous political entrenchment in a simple two-party dynamic model of income redistribution … with probabilistic voting. A partially self-interested left-wing party may implement (entrenchment) policies reducing the … the net gain that low-skill agents obtain from income redistribution, which only the Left (but not the Right) can credibly …
Persistent link: https://www.econbiz.de/10009535765
We model the electoral politics of redistribution. Taxation has efficiency and equity effects. Citizens and parties …
Persistent link: https://www.econbiz.de/10014062012
This paper surveys the literature on the political economy of social security. We review models that address the following questions: (i) Why do social security programs that transfer resources from young and middle-aged workers to the elderly exist? (ii) What are the economic and political...
Persistent link: https://www.econbiz.de/10014071304
well as in voting contexts. In contrast, models of political economy are based on selfish-voters who derive utility solely …
Persistent link: https://www.econbiz.de/10012724410