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When is the median voter paradigm a reasonable guide for policy choices in a representative democracy?

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  • Alex Cukierman
  • Yossi Spiegel

Abstract

The median voter paradigm (MVP) has been widely used to study the interactions between economic and political behavior. While this approach is easy to work with, it abstracts from institutional detail. This paper explores whether the MVP leads on average to the same policies that would be chosen in a two‐party representative democracy (RD). When it does not, the paper fully characterizes the size and magnitude of the average divergence (or bias) between policy choices in MVP and in RD in terms of the degree of polarization between the parties, their relative electoral prospects, and the distribution of electoral uncertainty. The results are then applied to the influential Meltzer and Richard (1981) theory of the size of government.

Suggested Citation

  • Alex Cukierman & Yossi Spiegel, 2003. "When is the median voter paradigm a reasonable guide for policy choices in a representative democracy?," Economics and Politics, Wiley Blackwell, vol. 15(3), pages 247-284, November.
    • Handle: RePEc:bla:ecopol:v:15:y:2003:i:3:p:247-284
    DOI: 10.1111/1468-0343.00124
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    3. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
    4. Ulrich Schwalbe, 2006. "The Political Economy of Dominant Investors. Comment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(1), pages 222-224, March.
    5. Malte Luebker, 2014. "Income Inequality, Redistribution, and Poverty: Contrasting Rational Choice and Behavioral Perspectives," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 133-154, March.
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    8. Nejat ANBARCI & Mehmet ULUBASOGLU, 2010. "Endogenous Liberalization and Within-Country Inequality," EcoMod2010 259600008, EcoMod.
    9. Tim Willems, 2014. "You Can Go Your Own Way: Explaining Partisan Support for Independence," Economics Series Working Papers 717, University of Oxford, Department of Economics.
    10. Tim Willems, 2013. "Political Accountability and Policy Experimentation: Why to Elect Left-Handed Politicians?," Economics Series Working Papers 647, University of Oxford, Department of Economics.

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