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Does the Median Voter Model Explain the Size of Government?: Evidence from the States

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Author Info
 Gouveia, Miguel
Masia, Neal A

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Abstract

Despite an attempt by its own authors, it is difficult to argue that the influential model of the size of government developed by Meltzer and Richard (1981) has had convincing empirical backing. In this paper, the authors adapt that model to a model of state government size. The main testable hypothesis is that as income inequality grows, government size (as measured by the percentage of income devoted to government redistribution) grows. They test the model using panel data from the U.S. states from 1979-91. In contrast to the results found by Meltzer and Richard (1983), the authors find little evidence to support the model. The results are robust to several model specifications and estimation techniques. Copyright 1998 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 97 (1998)
Issue (Month): 1-2 (October)
Pages: 159-77
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Handle: RePEc:kap:pubcho:v:97:y:1998:i:1-2:p:159-77

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  1. Gradstein. Mark & Milanovic, Branko, 2002. "Does Liberte = Egalite ? A survey of the empirical links between democracy and inequality with some evidence on the transition economies," Policy Research Working Paper Series 2875, The World Bank. [Downloadable!]
    Other versions:
  2. Dietz Vollrath, 2008. "Wealth Distribution and the Provision of Public Goods: Evidence from the United States," Working Papers 2008-04, Department of Economics, University of Houston. [Downloadable!]
    Other versions:
  3. Gradstein, Mark & Milanovic, Branko, 2000. "Does Liberte = Egalite? A Survey of the Empirical Evidence on the Links between Political Democracy and Income Inequality," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Erwin Tiongson & Luiz de Mello, 2003. "Income Inequality and Redistributive Government Spending," IMF Working Papers 03/14, International Monetary Fund. [Downloadable!]
  5. Esteban Klor, 2002. "A Positive Model of Overlapping Income Taxation in a Federation of States," Wallis Working Papers WP32, University of Rochester - Wallis Institute of Political Economy. [Downloadable!]
  6. Gilmar Teddy Zambrana Cruz, 2008. "The role of municipal councils in social expenditure: how does politics determine social expenditure," Working Papers - General Series 453, Institute of Social Studies. [Downloadable!]
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