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Strategic Political Participation and Redistribution

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  • Toke Skovsgaard Aidt

Abstract

The purpose of this paper is to study formation of support and opposition to redistribution. We analyze a society with two groups of citizens and a government. The government distributes income from one group to the other in response to political pressure. The interaction between the groups is modeled as a two-stage game. In stage 1, the groups decide if they want to be politically active. In stage 2, the active group or groups seek influence on the direction and size of the transfer. We demonstrate that supporters of redistribution are always politically active but that opposition is often absent. Moreover, when opposition is absent there is a strong tendency for underdissipation of the transfer, while political competition typically leads to overdissipation. Copyright 2002 Blackwell Publishers Ltd..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics and Politics.

Volume (Year): 14 (2002)
Issue (Month): 1 ()
Pages: 19-40

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Handle: RePEc:bla:ecopol:v:14:y:2002:i:1:p:19-40

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Cited by:
  1. Johannes Münster, 2007. "Rents, dissipation and lost treasures: Comment," Public Choice, Springer, vol. 130(3), pages 329-335, March.
  2. Seabright, Paul, 2008. "Warfare and the Multiple Adoption of Agriculture After the Last Ice Age," IDEI Working Papers 522, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Aidt, T. & Hillman, A., 2008. "Enduring Rents," Cambridge Working Papers in Economics 0802, Faculty of Economics, University of Cambridge.
  4. Sadiraj, V. & Tuinstra, J. & Winden, F. van, 2004. "Interest Group Size Dynamics and Policymaking (extensive revised version of WP 01-03)," CeNDEF Working Papers 04-06, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
  5. Rowthorn, Robert & Seabright, Paul, 2010. "Property Rights, Warfare and the Neolithic Transition," TSE Working Papers 10-207, Toulouse School of Economics (TSE).
  6. Vjollca Sadiraj & Jan Tuinstra & Frans Winden, 2005. "Interest group size dynamics and policymaking," Public Choice, Springer, vol. 125(3), pages 271-303, December.
  7. Münster, Johannes, 2005. "Lobbying contests with endogenous policy proposals," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 41, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  8. Aidt, Toke Skovsgaard, 2003. "Redistribution and deadweight cost: the role of political competition," European Journal of Political Economy, Elsevier, vol. 19(2), pages 205-226, June.
  9. Münster, Johannes, 2005. "Lobbying contests with endogenous policy proposals," Discussion Papers, Research Unit: Market Processes and Governance SP II 2005-11, Social Science Research Center Berlin (WZB).

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