On Altruistic and Electoral Income Redistribution: Theory and Data

Dario Debowicz, Alejandro Saporiti and Yizhi Wang

Economics Discussion Paper Series from Economics, The University of Manchester

Abstract: We analyze a political competition model of redistributive policies. We show that the net transfers to the income groups consist of two parts, called altruistic and electoral redistribution. In accordance with the theory, the empirical evidence from a sample of developed and developing democracies strongly supports a positive and significant association between: (i) the net group transfers and the initial income gaps, and (ii) the net transfers to the non-poor (and respectively, the after-tax Gini coefficient) and power sharing disproportionality.

JEL-codes: C72 D72 D78 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-hpe and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:man:sespap:1801

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