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The structure of political power and redistribution in economies with multiple governments

Author

Listed:
  • Raúl A. Ponce Rodríguez

    (Universidad Autónoma de Ciudad Juárez)

  • Ikuho Kochi

    (Universidad Autónoma de Ciudad Juárez)

  • Luis E. Gutiérrez Casas

    (Universidad Autónoma de Ciudad Juárez)

Abstract

For economies with multiple governments, the effort and effectiveness of public redistribution policies depend on the political structure of the federation. The central government determines the degree of redistribution and the interaction between the preferences and wages of voters controlling, respectively, the central and sub-national governments determine whether income redistribution can be an effective tool to redistribute welfare. In this paper, we identify conditions in which the interaction between the central government and sub-national governments lead to a Pareto superior allocation in the redistribution of income.

Suggested Citation

  • Raúl A. Ponce Rodríguez & Ikuho Kochi & Luis E. Gutiérrez Casas, 2015. "The structure of political power and redistribution in economies with multiple governments," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 30(2), pages 269-303.
    • Handle: RePEc:emx:esteco:v:30:y:2015:i:2:p:269-303
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/29/29
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    References listed on IDEAS

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    More about this item

    Keywords

    redistribution; efficiency; federalism; elections;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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