The level and composition of public expenditures and revenues both have implications for economic development, as shown by the 'fiscal multiplier' and the 'quality of public finance' literature. Public finance decisions also influence the distribution of income. Based on a review of the...

A prerequisite for the adoption of redistributive policies in a democracy is that there be elected representatives who are either committed to or who have an incentive to advocate for such policies. To evaluate the prospects of such an outcome, this paper develops a theory exploring two...

This paper concerns public input provision as an instrument for redistribution under international outsourcing by using a model-economy comprising two countries, North and South, where firms in the North may outsource part of their low-skilled labor intensive production to the South. We consider...

In an overlapping generations model with two social classes, rich and poor, parents of the different social classes vote on two issues: redistributive policies for them and education investment for their children. Public education is the engine for growth through its effect on human capital; but...

We study the effect of electoral incentives on the allocation of public services across legislative districts. We develop a model in which elections encourage individual legislators to cater to parochial interests and thus aggravate the common pool problem. Using unique data from seven US...