ENDOGENOUS PARTY FORMATION AND THE EFFECT OF INCOME DISTRIBUTION ON POLICY

We develop a model of spatial political competition with ideological parties and uncertainty. The political issue is the income tax rate and the amount of a public good. The ideology of each party is determine endogenously. We show that the tax rate does not coincide with the ideal policy of the median voter. Moreover, the tax rate is not increasing in the difference between the mean income and the median income.

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Year of publication:	2000-03
Authors:	Ortín, Ignacio Ortuño ; Roemer, John E.
Institutions:	Instituto Valenciano de Investigaciones Económicas (IVIE)
Subject:	Party formation \| redistribution \| growth

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Extent:	application/pdf
Series:	Working Papers. Serie AD.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published by Ivie 23 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005212609