Rios-Rull, Jose-Victor; Krusell, Per - In: American Economic Review 89 (1999) 5, pp. 1156-1181
We study a dynamic version of Meltzer and Richard's median-voter model of the size of government. Taxes are proportional to total income, and they are redistributed as equal lump-sum transfers. Voting takes place periodically over time, and each consumer votes for the tax rate that maximizes his...