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Electoral Competition and Redistribution with Rationally Informed Voters

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  • Larcinese Valentino

    ()
    (London School of Economics and Political Science)

Abstract

In spite of the negligible probability that everyone has to cast a decisive vote, political information can be relevant for a number of private decisions. Under quite mild assumptions, the demand for information is increasing in income. Being informed affects responsiveness to electoral platforms and vote-seeking political parties should take this into account in their optimization process. As a consequence, redistribution is generally lower than what the median voter theorem predicts. Moreover, in contrast with what most literature takes for granted, an increase in inequality does not unambiguously increase redistribution. This is consistent with most empirical research in this field. Finally, an increase in the cost of information induces a reduction in redistribution.

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File URL: http://www.degruyter.com/view/j/bejeap.2004.4.issue-1/bejeap.2005.4.1.1366/bejeap.2005.4.1.1366.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 4 (2005)
Issue (Month): 1 (June)
Pages: 1-28

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Handle: RePEc:bpj:bejeap:v:contributions.4:y:2005:i:1:n:4

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Cited by:
  1. Valentino Larcinese, 2007. "Does political knowledge increase turnout? Evidence from the 1997 British general election," Public Choice, Springer, vol. 131(3), pages 387-411, June.
  2. Lind, J.T. & Rohner, D., 2011. "Knowledge is power: A theory of information, income and welfare spending," Cambridge Working Papers in Economics 1161, Faculty of Economics, University of Cambridge.
  3. Rafael Hortala-Vallve & Valentino Larcinese & Stephanie Rickard, 2013. "The Perverse Consequences of Policy Restrictions in the Presence of Asymmetric Information," STICERD - Economic Organisation and Public Policy Discussion Papers Series 48, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  4. Campante, Filipe R., 2011. "Redistribution in a model of voting and campaign contributions," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 646-656, August.
  5. Roland Hodler & Simon Luechinger & Alois Stutzer, 2012. "The Effects of Voting Costs on the Democratic Process and Public Finances," Working papers 2012/02, Faculty of Business and Economics - University of Basel.
  6. Roland Hodler, 2010. "Compulsory Voting and Public Finance," Working Papers 10.04, Swiss National Bank, Study Center Gerzensee.

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