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A common approach to defining equivalence scales is to consider a household modelled as if it maximizes a single utility function. This may be founded on an assumption of the household maximizing a welfare function of individual utilities. For a positive analysis of the household, this may be...
Persistent link: https://www.econbiz.de/10004980891
Persistent link: https://www.econbiz.de/10005188151
In democratic societies with skewed income distributions, simple political economy models predict that the poor will form a coalition to implement high taxes. I review this basic theory and some of its extensions. Then I discuss how we can test the model, and some common pitfalls, before I...
Persistent link: https://www.econbiz.de/10005538919
Non-linear relationships are common in economic theory, and such relationships are also frequently tested empirically. We argue that the usual test of non-linear relationships is flawed, and derive the appropriate test for a U shaped relationship. Our test gives the exact necessary and...
Persistent link: https://www.econbiz.de/10005619578
I study to what extent voters are forward looking and how future income affects <p> the voting decision. Particularly, I estimate the effect of both transitory and permanent income on preferences for different parties using a panel data set from the Norwegian Election Study. To construct a proxy...</p>
Persistent link: https://www.econbiz.de/10005652122
The time series nature of repeated surveys is seldom taken into account. The few studies that take this into account usually smooth the period-wise estimates without using the cross sectional information. This leads to inefficient estimation. I present a statistical model of repeated surveys and...
Persistent link: https://www.econbiz.de/10005652142
Political economy models predict that the rich oppose redistribution, and hence vote for conservative parties. Although this seems to fit the data well, I show that this is not true when we control for unobservable characteristics. Using Norwegian survey data, I study to what extent voting is...
Persistent link: https://www.econbiz.de/10005652214
In many countries extreme poverty is unnecessary. Yet it persists. We propose a simple index, denoted the Miser index, to measure the extent to which societies have poverty in the midst of affluence. It builds on the generalized Lorenz curve, but can also be seen as a measure of polarization...
Persistent link: https://www.econbiz.de/10005652312
I study to what extent voters are forward looking and how future income affects the voting decision. Particularly, I estimate the effect of both transitory and permanent income on preferences for different parties using a panel data set from the Norwegian Election Study. To construct a proxy for...
Persistent link: https://www.econbiz.de/10005652339
Non-linear relationships are common in economic theory, and such relationships are also frequently tested empirically. We argue that the usual test of non-linear relationships is flawed, and derive the appropriate test for a U shaped relationship. Our test gives the exact necessary and...
Persistent link: https://www.econbiz.de/10005652354