Trade reform creates winners and losers. When the median voter loses from reform, free trade is blocked. Allowing the electorate to vote for compensatory wage or employment subsidies may lead to free trade under these circumstances. However, placing compensation on the agenda may also lead to an...

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 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...