Social Ideology and Taxes in a Differentiated Candidates Framework
AbstractHow does ideological polarization on non-economic matters influence the size of government? We analyze this question using a differentiated candidates framework: Two office-motivated candidates differ in their (fixed) ideological position and their production function for public goods, and choose which tax rate to propose. We provide conditions under which a unique equilibrium exists. In equilibrium, candidates propose different tax rates, and the extent of economic differentiation is influenced by the distribution and intensity of non-economic preferences in the electorate. In turn, the extent of economic differentiation influences whether parties divide the electorate primarily along economic or social lines.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3503.
Date of creation: 2011
Date of revision:
differentiated candidates; policy divergence; ideology;
Other versions of this item:
- Stefan Krasa & Mattias Polborn, 2014. "Social Ideology and Taxes in a Differentiated Candidates Framework," American Economic Review, American Economic Association, vol. 104(1), pages 308-22, January.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
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