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Political Representation and Legislative Bargaining over Redistribution

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  • Yuta Saito

    (Kobe International University)

Abstract

The theories of dynamic legislative bargaining have supposed that the distribution of legislators are constant across periods. In reality, a transition in the economic condition makes people change the candidate they vote for and politicians alter their opinions. Regarding the redistribution and inequality issue, a redistribution policy affects the future legislators’ policy preferences via influencing the economic inequality among the people. This paper recognizes such a feedback effect and investigates its effect on the outcomes in the legislature. This finding suggests that a high political representation causes a high capital accumulation associated with a low expected tax rate. Socially efficient allocation can be reached only if the political representation is perfect.

Suggested Citation

  • Yuta Saito, 2019. "Political Representation and Legislative Bargaining over Redistribution," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(3), pages 251-262, August.
    • Handle: RePEc:kap:iaecre:v:25:y:2019:i:3:d:10.1007_s11294-019-09749-0
    DOI: 10.1007/s11294-019-09749-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Dynamic bargaining; Political representation; Inequality; Capital taxation;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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