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Some International Evidence on Deviations from Pocketbook Voting and Its Relevance for the Political Economy

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Author Info
Wei-Kang WONG ()

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Abstract

This paper empirically investigates whether individuals indeed vote with their pocketbooks. Individual level data from the General Social Survey and the World Values Survey show significant deviations from pocketbook voting even among the poorest and the richest individuals in the sample. Differences in income status, education status, and perceived social mobility explain only a small fraction of the cross-country variation in the preference for income equality. Economically large and statistically significant country effects remain. There is no evidence that the median preference for income equality is more intense when incomes are more unequal or when the regimes are more democratic, a finding that rules out redistributive pressure as an important mechanism through which inequality affects growth under majority rule.

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Publisher Info
Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0103.

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Length: 33 pages
Date of creation: Sep 2001
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Handle: RePEc:nus:nusewp:wp0103

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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  1. Daron Acemoglu & James Robinson, 1999. "A Theory of Political Transitions," Working papers 99-26, Massachusetts Institute of Technology (MIT), Department of Economics.
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  2. Alesina, Alberto & Rodrik, Dani, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 465-90, May. [Downloadable!] (restricted)
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  3. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," Harvard Institute of Economic Research Working Papers 1936, Harvard - Institute of Economic Research. [Downloadable!]
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  4. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  5. Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
  6. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February. [Downloadable!] (restricted)
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