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Public Finance and Right-Wing Populism

Linuz Aggeborn () and Lovisa Persson ()
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Linuz Aggeborn: Department of Government, Postal: Uppsala University

No 1182, Working Paper Series from Research Institute of Industrial Economics

Abstract: We build a public finance model that explains why voters vote for right-wing populists, and also under which conditions established politicians will adopt a right-wing populist policy platform. Voters with lower private income have a stronger demand for basic public services at the expense of spending on a global good; generosity of refugee support systems, foreign aid, and environmental protection. Low income voters are thus more prone to support right-wing populists who oppose spending on such global goods. We conclude that established politicians that are challenged by right-wing populists will implement a policy with no global good spending if the relative cost of the global good is high enough. Additionally, adoption of right-wing populist policy is more likely when the economy is in a recession.

Keywords: Right-wing populism; Agency; Immigration (search for similar items in EconPapers)
JEL-codes: D70 D72 H39 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-cta, nep-pol and nep-pub
Date: 2017-10-05
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1182

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