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Income Redistribution and Public Good Provision in a Diverse Society

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  • Selim Jürgen Ergun

    (Department of Economic Theory and Economic History, University of Granada.)

Abstract

I analyze the post-electoral coalition formation process in a two dimensional political environment. The two dimensions are the degree of a proportional tax rate and the degree of a group-speci?c public good. Parties are o¢ ce-motivated and care instrumentally about policy. I analyze when stable coalitions exist and obtain that for that to occur o¢ ce bene?ts should exceed a certain level. I analyze how this critical level and the set of policies implemented are a¤ected by the income levels and the degree of diversity. For both o¢ ce and policy-motivated parties the same result holds but the critical level might be lower.

Suggested Citation

  • Selim Jürgen Ergun, 2009. "Income Redistribution and Public Good Provision in a Diverse Society," ThE Papers 09/04, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:09/04
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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers09_04.pdf
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    References listed on IDEAS

    as
    1. Selim Ergun, 2010. "From plurality rule to proportional representation," Economics of Governance, Springer, vol. 11(4), pages 373-408, November.
    2. Enriqueta Aragonès, 2007. "The key party in the Catalan government," Spanish Economic Review, Springer;Spanish Economic Association, vol. 9(4), pages 249-271, December.
    3. Enriqueta Aragonès, 2007. "Government formation in a two dimensional policy space," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(2), pages 151-184, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Electoral competition; coalition formation; public goods; income redistribution.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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