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Divide the Dollar, A Model of Interregional Redistributive Politics

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  • Ignacio Ortuno-Ortin
  • Christian Schultz

Abstract

We develop a dynamic political model of dividing a fixed amount of money among n districts. There are two political parties that make proposals on such divisions and compete in each district. Each district elects a representative to a legislature. Each party is governed by its representatives who are elected to the legislature. Voters are myopic and there is a slight incumbency advantage. We show that if all districts are of the same size then they all get the same share in the long run.
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Suggested Citation

  • Ignacio Ortuno-Ortin & Christian Schultz, 1999. "Divide the Dollar, A Model of Interregional Redistributive Politics," EPRU Working Paper Series 99-02, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:99-02
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    1. Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
    2. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
    3. James M. Snyder, 1994. "Safe Seats, Marginal Seats, And Party Platforms: The Logic Of Platform Differentiation," Economics and Politics, Wiley Blackwell, vol. 6(3), pages 201-213, November.
    4. Richard D. Mckelvey & Raymond Riezman, 2013. "Seniority in Legislature," World Scientific Book Chapters, in: Raymond Riezman (ed.), International Trade Agreements and Political Economy, chapter 12, pages 185-199, World Scientific Publishing Co. Pte. Ltd..
    5. Chari, V V & Jones, Larry E & Marimon, Ramon, 1997. "The Economics of Split-Ticket Voting in Representative Democracies," American Economic Review, American Economic Association, vol. 87(5), pages 957-976, December.
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