The reformulation of the median voter hypothesis and its testing proposed in Milanovic (2000) has been criticized from four different perspectives. The critiques are discussed and assessed.

Legislation affects corporate governance and the return to human and financial capital. We allow the preference of a political majority to determine both the governance structure and the extent of labor rents. In a society where median voters have relatively more at stake in the form of human...

How can we evaluate the redistributive effect of welfare states? Do tax and transfer systems reduce the level of inequality generated in the market? In order to answer these questions, we need to be equipped with adequate measures of redistribution. Current measures employed in the sociology and...

If women make different economic decisions than men on average, then an increase in women's influence in the political and economic spheres of society might change economic outcomes. In this note, we focus on the impact of female enfranchisement on fiscal policy outcomes. We present a simple...

One of the main features of health insurance is moral hazard, as defined by Pauly (1968); people face incentives for excess utilization of medical care since they do not pay the full marginal cost for provision. To mitigate the moral hazard problem, a coinsurance can be included in the insurance...

We analyze a contest between two groups where group members have differing valuations for the contested rent. Generically the pivotal group member with the median valuation of the rent will not act himself but will want to send a group member that has preferences different to her own into the...

This paper studies the location decisions of political parties. We propose a game where agents vote according to ideology and valence, and media create candidates' charisma. The results we obtain show that candidates realize the power of media and therefore locate themselves at some point...

The relationship between inequality and redistribution is usually studied under the assumption that the government collects different amounts of taxes from each citizen (voter) but gives back the same amount (in cash or in kind) to everyone. In this paper we consider what happens if the...