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Turning out for redistribution: the effect of voter turnout on top marginal tax rates

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  • Navid Sabet

    (Goethe University Frankfurt)

Abstract

I investigate the impact of voter turnout on top marginal tax rates in OECD countries between 1974 and 2013. I find that higher turnout leads to higher taxes for top earners, a result broadly consistent with the median voter theorem. Using novel survey data, I confirm that individuals in all but the wealthiest income bracket prefer higher taxes on the rich more than they prefer greater government spending in the economy. In line with these preferences, I find that turnout has a significantly negative effect on top income shares but no effect on the size of government or on public welfare expenditure. An instrumental variables approach confirms my findings. Overall, the paper is the first of its kind to link turnout to measures of redistribution that affect top earners and to preferences for redistribution.

Suggested Citation

  • Navid Sabet, 2023. "Turning out for redistribution: the effect of voter turnout on top marginal tax rates," Public Choice, Springer, vol. 194(3), pages 347-367, March.
    • Handle: RePEc:kap:pubcho:v:194:y:2023:i:3:d:10.1007_s11127-022-01036-7
    DOI: 10.1007/s11127-022-01036-7
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    Cited by:

    1. Felix Bierbrauer & Aleh Tsyvinski & Nicolas Werquin, 2021. "Taxes and Turnout: When the Decisive Voter Stays at Home," ECONtribute Discussion Papers Series 071, University of Bonn and University of Cologne, Germany.
    2. Sutirtha Bagchi & Matthew J. Fagerstrom, 2023. "Wealth inequality and democracy," Public Choice, Springer, vol. 197(1), pages 89-136, October.
    3. Felix Bierbrauer & Aleh Tsyvinski & Nicolas Werquin, 2021. "Taxes and Turnout: When the Decisive Voter Stays at Home," CESifo Working Paper Series 8954, CESifo.
    4. Bierbrauer, Felix & Tsyvinski, Aleh & Werquin, Nicolas, 2021. "Taxes and Turnout: When the decisive voter stays at home," CEPR Discussion Papers 15928, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Voter turnout; Preferences for redistribution; Elections; Top tax rates;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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