ENDOGENOUS PARTY FORMATION AND THE EFFECT OF INCOME DISTRIBUTION ON POLICY

Ignacio Ortuño Ortín and John Roemer
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Ignacio Ortuño Ortín: Universidad de Alicante

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: We develop a model of spatial political competition with ideological parties and uncertainty. The political issue is the income tax rate and the amount of a public good. The ideology of each party is determine endogenously. We show that the tax rate does not coincide with the ideal policy of the median voter. Moreover, the tax rate is not increasing in the difference between the mean income and the median income.

Keywords: Party formation; redistribution; growth. (search for similar items in EconPapers)
Pages: 23 pages
Date: 2000-03
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2000-06

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