Local politics and economic geography
AbstractWe consider information aggregation in national and local elections when voters are mobile and might sort themselves into local districts. Using a standard model of private information for voters in elections in combination with a New Economic Geography model, agglomeration occurs for economic reasons whereas voter stratification occurs due to political preferences. We compare a national election, where full information equivalence is attained, with local elections in a three-district model. We show that full information equivalence holds at a stable equilibrium in only one of the three districts when transportation cost is low. The important comparative static is that full information equivalence is a casualty of free trade. When trade is more costly, people tend to agglomerate for economic reasons, resulting in full information equivalence in the political sector. Under free trade, people sort themselves into districts, most of which are polarized, resulting in no full information equivalence in these districts. We examine the implications of the model using data on corruption in the legislature of the state of Alabama and in the Japanese Diet.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 47002.
Date of creation: 15 May 2013
Date of revision:
information aggregation in elections; informative voting; new economic geography; local politics;
Other versions of this item:
- Berliant, Marcus & Tabuchi, Takatoshi, 2011. "Local politics and economic geography," MPRA Paper 35169, University Library of Munich, Germany.
- Berliant, Marcus & Tabuchi, Takatoshi, 2012. "Local politics and economic geography," MPRA Paper 39596, University Library of Munich, Germany.
- Berliant, Marcus & Tabuchi, Takatoshi, 2012. "Local politics and economic geography," MPRA Paper 43086, University Library of Munich, Germany.
- Berliant, Marcus & Tabuchi, Takatoshi, 2011. "Local Politics and Economic Geography," MPRA Paper 29771, University Library of Munich, Germany.
- Berliant, Marcus & Tabuchi, Takatoshi, 2011. "Local politics and economic geography," MPRA Paper 28120, University Library of Munich, Germany.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-19 (All new papers)
- NEP-CDM-2013-05-19 (Collective Decision-Making)
- NEP-CTA-2013-05-19 (Contract Theory & Applications)
- NEP-GEO-2013-05-19 (Economic Geography)
- NEP-MIC-2013-05-19 (Microeconomics)
- NEP-POL-2013-05-19 (Positive Political Economics)
- NEP-URE-2013-05-19 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald R. Davis, 1997.
"The Home Market, Trade, and Industrial Structure,"
NBER Working Papers
6076, National Bureau of Economic Research, Inc.
- Donald R. Davis, 1997. "The home market, trade, and industrial structure," Staff Reports 35, Federal Reserve Bank of New York.
- Donald R. Davis, 1997. "The Home Market, Trade and Industrial Structure," Harvard Institute of Economic Research Working Papers 1800, Harvard - Institute of Economic Research.
- Davis, D.R., 1997. "The Home Market, Trade, and Industrial Structure," Papers 597, Harvard - Institute for International Development.
- Ernst Maug & Bilge Yilmaz, 2002. "Two-Class Voting: A Mechanism for Conflict Resolution," American Economic Review, American Economic Association, vol. 92(5), pages 1448-1471, December.
- Micael Castanheira De Moura, 2003.
"Why vote for losers?,"
ULB Institutional Repository
2013/10005, ULB -- Universite Libre de Bruxelles.
- Epple, Dennis & Platt, Glenn J., 1998. "Equilibrium and Local Redistribution in an Urban Economy when Households Differ in both Preferences and Incomes," Journal of Urban Economics, Elsevier, vol. 43(1), pages 23-51, January.
- Couch, Jim F & Atkinson, Keith E & Shughart, William F, II, 1992. " Ethics Laws and the Outside Earnings of Politicians: The Case of Alabama's "Legislator-Educators."," Public Choice, Springer, vol. 73(2), pages 135-45, March.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Maarten Bosker & Steven Brakman & Harry Garretsen & Marc Schramm, 2010. "Adding geography to the new economic geography: bridging the gap between theory and empirics," Journal of Economic Geography, Oxford University Press, vol. 10(6), pages 793-823, November.
- Timothy Feddersen & Wolfgang Pesendorfer, 1994.
"Voting Behavior and Information Aggregation in Elections with Private Information,"
1117, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections with Private Information," Econometrica, Econometric Society, vol. 65(5), pages 1029-1058, September.
- Timothy Feddersen & Wolfgang Pesendorfer, 1997. "Voting Behavior and Information Aggregation in Elections With Private Information," Levine's Working Paper Archive 1560, David K. Levine.
- Maarten Bosker & Steven Brakman & Harry Garretsen & Marc Schramm, 2007. "Adding Geography to the New Economic Geography," CESifo Working Paper Series 2038, CESifo Group Munich.
- Takatoshi Tabuchi & Dao-Zhi Zeng, 2000.
"Stability of Spatial Equilibrium,"
CIRJE-F-79, CIRJE, Faculty of Economics, University of Tokyo.
- Takanori Ago & Ikumo Isono & Takatoshi Tabuchi, 2006. "Locational disadvantage of the hub," The Annals of Regional Science, Springer, vol. 40(4), pages 819-848, December.
- Ernst Maug & Bilge Yilmaz, 2002. "Two-Class Voting: A Mechanism for Conflict Resolution?," Levine's Working Paper Archive 391749000000000536, David K. Levine.
- Ernst Maug & Bilge Yilmaz, 2002. "Two-Class Voting: A Mechanism for Conflict Resolution?," NajEcon Working Paper Reviews 391749000000000536, www.najecon.org.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.