Taxation and Policy Change: A Median Voter Model for Australia 1968-69 to 1981-82

Geoffrey Brennan

Australian Economic Review, 1985, vol. 18, issue 3, pages 20-33

Abstract: This article constructs a median voter model of public expenditure levels, which includes as a central piece of the analysis the costs of expenditure increments to voters in various income groups. These marginal cost-shares or 'tax-prices' are derived from tax data for three separate periods over the larger period under discussion. The levels of spending predicted by the model are compared with the levels of spending that actually prevailed, as a means of checking the median voter model - and in that sense, to investigate the plausibility of one line of reasoning that might be used to explain 'continuity and change' from 1968-69 to 1981-82. Copyright 1985 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Date: 1985

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