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Endogenous Party Formation And The Effect Of Income Distribution On Policy

Author

Listed:
  • Ignacio Ortuño Ortín

    (Universidad de Alicante)

  • John E. Roemer

    (University of California-Davis)

Abstract

We develop a model of spatial political competition with ideological parties and uncertainty. The political issue is the income tax rate and the amount of a public good. The ideology of each party is determine endogenously. We show that the tax rate does not coincide with the ideal policy of the median voter. Moreover, the tax rate is not increasing in the difference between the mean income and the median income.

Suggested Citation

  • Ignacio Ortuño Ortín & John E. Roemer, 2000. "Endogenous Party Formation And The Effect Of Income Distribution On Policy," Working Papers. Serie AD 2000-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2000-06
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2000-06.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. John Roemer, 2005. "Distribution and politics: a brief history and prospect," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 25(2), pages 507-525, December.
    2. De Donder, Philippe & Hindriks, Jean, 2007. "Equilibrium social insurance with policy-motivated parties," European Journal of Political Economy, Elsevier, vol. 23(3), pages 624-640, September.
    3. Woojin Lee, 2014. "Inequality and Redistribution: Political Parties May Matter," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(3), pages 482-495, September.
    4. Llavador, Humberto & Solano-García, Angel, 2011. "Immigration policy with partisan parties," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 134-142, February.
    5. Andrei Gomberg & Francisco Marhuenda & Ignacio Ortuño-Ortín, 2004. "A model of endogenous political party platforms," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(2), pages 373-394, August.
    6. Woojin Lee, 2008. "Bandwagon, underdog, and political competition: The uni-dimensional case," UMASS Amherst Economics Working Papers 2008-07, University of Massachusetts Amherst, Department of Economics, revised Apr 2008.
    7. Angel Solano García, 2015. "Tax Morale with Partisan Parties," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 83-108, June.
    8. Andrei M. Gomberg & Francisco Marhuenda & Ignacio Ortuño-Ortín, 2016. "Endogenous party platforms: ‘stochastic’ membership," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(4), pages 839-866, October.

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