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The Political Economy of Redistribution Policy

Author

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  • Luna Bellani
  • Heinrich Ursprung
Abstract
We review the literature on the public choice approach to explaining redistribution policies. The focus is on policies that are pursued with the sole reason to redistribute initial endowments. Moreover, we restrict ourselves to redistribution in democracies. In democratic settings, generic redistribution games lack equilibria. Structure-inducing rules that give rise to realistic redistribution patterns may concern the underlying economic model, political institutions, and firmly established preferences, beliefs, and attitudes of the voters. We present the respective lines of argument in turn and then present the related empirical evidence.

Suggested Citation

  • Luna Bellani & Heinrich Ursprung, 2016. "The Political Economy of Redistribution Policy," CESifo Working Paper Series 6189, CESifo.
    • Handle: RePEc:ces:ceswps:_6189
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    4. Bellani, Luna & Fabella, Vigile Marie, 2018. "Upward Income Mobility and Legislator Support for Education Policies," IZA Discussion Papers 11324, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    redistribution; political economy;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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