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Composition of Government Budget, Non-single Peakedness, and Majority Voting

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Author Info
Bearse, Peter
Glomm, Gerhard
Janeba, Eckhard

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Abstract

In this paper we study whether majority voting equilibria exist when preferences over public policies are not single peaked. The government levies a proportional income tax. Tax revenue is used to finance a uniform lump-sum transfer and public education. Individuals vote on the composition of the government budget. We show that the single-crossing property cannot be invoked to establish existence of a majority voting equilibrium. In a simple parametric example we find that cycles are pervasive. Copyright 2001 by Blackwell Publishing Inc.

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Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 3 (2001)
Issue (Month): 4 ()
Pages: 471-81
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Handle: RePEc:bla:jpbect:v:3:y:2001:i:4:p:471-81

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  1. Gilat Levy, 2004. "Public Education for the Minority,Private Education for the Majority," STICERD - Theoretical Economics Paper Series /2004/470, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  2. John Creedy & Solmaz Moslehi, 2007. "Modelling the Composition of Government Expenditure in Democracies," Department of Economics - Working Papers Series 1007, The University of Melbourne. [Downloadable!]
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  3. John Creedy & Shuyun May Li & Solmaz Moslehi, 2008. "The Composition of Government Expenditure in an Overlapping Generations Model," Department of Economics - Working Papers Series 1043, The University of Melbourne. [Downloadable!]
  4. John Creedy & Solmaz Moslehi, 2008. "Voting over Taxes and Expenditure: The Role of Home Production," Department of Economics - Working Papers Series 1052, The University of Melbourne. [Downloadable!]
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This page was last updated on 2009-11-22.


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