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The Political Economy of Xenophobia and Distribution: The Case of Denmark

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Author Info
John E. Roemer
Karine Van der Straeten

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Abstract

For the first time in some years, a conservative government came to power in Denmark in 2001, due primarily to the citizenry's disaffection with social-democratic policies on immigration. We represent political competition in Denmark as taking place over two issues-the size of the public sector and immigration-and model political equilibrium using the party unanimity Nash equilibrium (PUNE) concept, which generates equilibria on multi-dimensional policy spaces where parties form endogenously. By fitting the model to Danish data, we argue that citizen xenophobia may be expected to decrease the size of the Danish public sector by an amount between 12% and 36% of one standard deviation of the probability distribution of citizens' ideal points of the size of the public sector. Copyright The editors of the "Scandinavian Journal of Economics" 2006 .

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9442.2006.00450.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 108 (2006)
Issue (Month): 2 (07)
Pages: 251-277
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Handle: RePEc:bla:scandj:v:108:y:2006:i:2:p:251-277

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  1. Anesi, Vincent & De Donder, Philippe, 2007. "Party Formation and Racism," IDEI Working Papers 450, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  2. Elvire Guillaud, 2008. "Preferences for redistribution: a European comparative analysis," PSE Working Papers 2008-41, PSE (Ecole normale supérieure). [Downloadable!]
  3. Gerdes, Christer & Wadensjö, Eskil, 2008. "The Impact of Immigration on Election Outcomes in Danish Municipalities," IZA Discussion Papers 3586, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Elvire Guillaud & Stefano Palombarini, 2006. "Evolution des attentes sociales et comportement électoral : France, 1978-2002," PSE Working Papers 2006-37, PSE (Ecole normale supérieure). [Downloadable!]
  5. Jo Thori Lind, 2005. "Why is there so little redistribution?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 111-125. [Downloadable!]
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