We study the effect of power sharing over income redistribution among different socio-economic groups in a model of redistributive politics with fairness concern. We prove that a unique pure-strategy equilibrium exists under fairly general conditions; and we show that equilibrium transfers...

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...

The debate on whether democracy and inequality increase the level of redistribution is ongoing. We construct a model that predicts higher probability of redistribution in democracies than autocracies through social transfers. Higher inequality leads to more redistribution in democracies but not...

Income inequality is rising but there seems to be no clear-cut effect on redistribution preferences, which is inconsistent with expectations of individual utility maximization. To explain this puzzle, recent research focuses on other-regarding motives. This study follows prior theorization...