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The Effect Of Direct Democracy On Income Redistribution: Evidence For Switzerland

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  • LARS P. FELD
  • JUSTINA A.V. FISCHER
  • GEBHARD KIRCHG�SSNER

Abstract

"In political economics, the impact of institutions on income redistribution is mainly studied by comparing different forms of representative democracy. In this article, we analyze the influence of direct democratic institutions on redistribution first focusing on welfare and nonwelfare spending using yearly panel data for Swiss cantons. Then, we estimate a model, which explains the determinants of actually achieved redistribution measured by Gini coefficients. While our results indicate that less public funds are used to redistribute income, inequality is not reduced to a lesser extent in direct than in representative democracies for a given initial income distribution." ("JEL" D7, D78, I30, H75, H11) Copyright (c) 2009 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 48 (2010)
Issue (Month): 4 (October)
Pages: 817-840

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Handle: RePEc:bla:ecinqu:v:48:y:2010:i:4:p:817-840

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Citations

Blog mentions

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  1. Mont Pelerin Society 2012
    by Martin Gregor in economic clickbeetle on 2012-10-19 14:49:00
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Cited by:
  1. Fischer, Justina A.V., 2007. "The Impact of Direct Democracy on Public Education: Evidence for Swiss Students in Reading, Mathematics and Natural Science," Working Paper Series in Economics and Finance 688, Stockholm School of Economics.
  2. Feld, Lars P. & Schnellenbach, Jan, 2013. "Political institutions and income (re-)distribution: Evidence from developed economies," Freiburg Discussion Papers on Constitutional Economics 13/6, Walter Eucken Institut e.V..
  3. Lars P. Feld, 2004. "The European Constitution Project from the Perspective of Constitutional Political Economy," Marburg Working Papers on Economics 200415, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. Micael Castanheira & Gaëtan J.A. Nicodème & Paola Profeta, 2011. "On the Political Economics of Tax Reforms," CESifo Working Paper Series 3538, CESifo Group Munich.
  5. Niklas Potrafke, 2013. "Evidence on the Political Principal-Agent Problem from Voting on Public Finance for Concert Halls," CESifo Working Paper Series 4306, CESifo Group Munich.
  6. David Dorn & Justina Fischer & Gebhard Kirchgässner & Alfonso Sousa-Poza, 2007. "Is It Culture or Democracy? The Impact of Democracy and Culture on Happiness," Social Indicators Research, Springer, vol. 82(3), pages 505-526, July.
  7. Rainer Winkelmann, 2011. "Conspicuous consumption and satisfaction," ECON - Working Papers 030, Department of Economics - University of Zurich.
  8. Fischer, Justina, 2011. "Living under the ‘right’ government: does political ideology matter to trust in political institutions? An analysis for OECD countries," MPRA Paper 33344, University Library of Munich, Germany.
  9. Hans-Günter Krüsselberg, 2005. "Milton Friedman und der Wissenschaftliche Beirat für Familienfragen Elternkompetenz und Anteilscheine am Schulbudget – Gedanken über Reformpotenziale," Marburg Working Papers on Economics 200506, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  10. Lars Feld & Jan Schnellenbach, 2014. "Political institutions and income (re-)distribution: evidence from developed economies," Public Choice, Springer, vol. 159(3), pages 435-455, June.
  11. Arvanitidis Paschalis A. & Kyriazis Nicholas C., 2013. "Democracy and Public Choice in Classical Athens," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(2), pages 213-248, August.
  12. Fischer, Justina AV & Schneider, Friedrich, 2007. "Protestantism and Government Spending: a Negative Relationship? An Empirical Application to Swiss Cantons," Working Paper Series in Economics and Finance 685, Stockholm School of Economics.
  13. Justina AV Fischer, 2011. "Living under the ‘right’ government: does political ideology matter to trust in political institutions?," CEIS Research Paper 212, Tor Vergata University, CEIS, revised 14 Oct 2011.
  14. Lars P. Feld & Christoph A. Schaltegger, 2012. "Die Politische Ökonomik der Besteuerung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 116-136, 02.
  15. Uwaifo Oyelere, Ruth, 2007. "Within and Between Gender Disparities in Income and Education Benefits from Democracy," IZA Discussion Papers 3221, Institute for the Study of Labor (IZA).
  16. David Dorn & Justina Fischer & Gebhard Kirchgässner & Alfonso Sousa-Poza, 2008. "Direct democracy and life satisfaction revisited: new evidence for Switzerland," Journal of Happiness Studies, Springer, vol. 9(2), pages 227-255, June.

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