Technological Progress and Political Polarization

Insook Lee
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Insook Lee: Bay Area International Business School, Beijing Normal University

Hacienda Pública Española / Review of Public Economics, 2025, vol. 252, issue 1, 29-72

Abstract: How does technological progress affect political polarization? For addressing this question, in an economy where taxation policy is selected by majority-rule voting and voters are differentiated by earning ability, each voter’s own ideal taxation policy is obtained to measure political polarization as distance between left-wing and right-wing voters’ ideal policies. Technological progress exacerbates political polarization, when it is capital-biased by increasing relative capital productivity. In contrast, technological progress does not affect political polarization, when it is unbiased by preserving relative factor productivity. Both biased and unbiased technological progresses do not affect politico-economic distortion, while only the former affects political polarization.

Keywords: Technological progress; Political polarization; Relative capital productivity; Politico-economic distortion (search for similar items in EconPapers)
JEL-codes: D72 E62 O33 (search for similar items in EconPapers)
Date: 2025
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