Saint-Paul, Gilles; Ticchi, Davide; Vindigni, Andrea - Collegio Carlo Alberto, Università degli Studi di Torino - 2014
We develop a theory of endogenous political entrenchment in a simple two-party dy- namic model of income redistribution with probabilistic voting. A partially self-interested left-wing party may implement (entrenchment) policies reducing the income of its own constituency, the lower class, in...