Ortín, Ignacio Ortuño; Roemer, John E. - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2000
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...