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Inefficient redistribution and inefficient redistributive politics
[Ineffiziente Umverteilung und ineffiziente Umverteilungspolitik]

Author

Listed:
  • Kovenock, Dan
  • Roberson, Brian
Abstract
This paper examines the effect of inefficient redistribution in Myerson’s (1993) model of redistributive politics. Regardless of the absolute levels of the efficiency of political parties’ transfers to different voter segments, parties have incentive to (stochastically) shift resources away from voter segments with large relative efficiency gaps between the two parties’ transfers towards voter segments with smaller relative efficiency gaps. Because of this dependence on relative, and not absolute, levels of efficiency, the parties’ optimal strategies may lead to large discrepancies between the sum of the budgetary transfers and the sum of the effective transfers. At the extreme, in the spirit of Magee, Brock, and Young (1989), we obtain „black hole” inefficiency. When the model is extended to allow for loyal voter segments and loyalty to a party is positively related to the efficiency of that party’s transfers to the segment, the incentives leading to black hole inefficiency become even stronger.

Suggested Citation

  • Kovenock, Dan & Roberson, Brian, 2008. "Inefficient redistribution and inefficient redistributive politics [Ineffiziente Umverteilung und ineffiziente Umverteilungspolitik]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-01, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmpg:spii200801
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    References listed on IDEAS

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    1. Myerson, Roger B., 1993. "Incentives to Cultivate Favored Minorities Under Alternative Electoral Systems," American Political Science Review, Cambridge University Press, vol. 87(4), pages 856-869, December.
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    4. Dan Kovenock & Brian Roberson, 2008. "Electoral Poaching and Party Identification," Journal of Theoretical Politics, , vol. 20(3), pages 275-302, July.
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    Cited by:

    1. Boyer, Pierre C. & Konrad, Kai A. & Roberson, Brian, 2017. "Targeted campaign competition, loyal voters, and supermajorities," Journal of Mathematical Economics, Elsevier, vol. 71(C), pages 49-62.
    2. Marcin Dziubiński, 2013. "Non-symmetric discrete General Lotto games," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 801-833, November.
    3. Subhasish Chowdhury & Dan Kovenock & Roman Sheremeta, 2013. "An experimental investigation of Colonel Blotto games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(3), pages 833-861, April.
    4. Pierre C. Boyer & Brian Roberson & Christoph Esslinger, 2024. "Public Debt and the Political Economy of Reforms," American Economic Journal: Microeconomics, American Economic Association, vol. 16(3), pages 459-491, August.
    5. Marco Magnani, 2017. "Electoral competition with ideologically biased voters," Journal of Theoretical Politics, , vol. 29(3), pages 415-439, July.
    6. Kovenock, Dan & Roberson, Brian, 2011. "Non-partisan ‘get-out-the-vote’ efforts and policy outcomes," European Journal of Political Economy, Elsevier, vol. 27(4), pages 728-739.
    7. Dan Kovenock & Brian Roberson, 2009. "Is the 50-State Strategy Optimal?," Journal of Theoretical Politics, , vol. 21(2), pages 213-236, April.
    8. Glaeser, Edward L. & Ponzetto, Giacomo A.M., 2014. "Shrouded costs of government: The political economy of state and local public pensions," Journal of Public Economics, Elsevier, vol. 116(C), pages 89-105.
    9. Stefan Homburg, 2011. "Colonel Blotto und seine ökonomischen Anwendungen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 1-11, February.

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    More about this item

    Keywords

    Redistributive politics; redistribution; inefficiency;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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