Endogenous constitutions
Davide Ticchi () and
Andrea Vindigni
Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Abstract:
We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of taxation. A consensual democracy redistributes resources toward a broader spectrum of social groups but also has a larger government and a higher level of taxation. We show that a consensual system turns out to be preferred by society when ex ante income inequality is relatively low, while a majoritarian system is chosen when income inequality is relatively high. We also obtain that consensual democracies should be expected to be ruled more often by center-left coalitions while the right should have an advantage in majoritarian constitutions. The implications for the relationship between inequality and redistribution are discussed. Historical evidence and a cross-sectional analysis support our results.
Keywords: Endogenous constitutions; consensual democracy; majoritarian democracy; inequality (search for similar items in EconPapers)
JEL-codes: D31 D72 P16 (search for similar items in EconPapers)
Date: 2002-02, Revised 2005-09
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Citations: View citations in EconPapers (6)
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Related works:
Journal Article: Endogenous Constitutions (2010)
Working Paper: Endogenous Constitutions (2003) 
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:896
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