Advanced Search
MyIDEAS: Login

Inefficient redistribution and inefficient redistributive politics

Contents:

Author Info

  • Kovenock, Dan
  • Roberson, Brian

Abstract

This paper examines the effect of inefficient redistribution in Myerson’s (1993) model of redistributive politics. Regardless of the absolute levels of the efficiency of political parties’ transfers to different voter segments, parties have incentive to (stochastically) shift resources away from voter segments with large relative efficiency gaps between the two parties’ transfers towards voter segments with smaller relative efficiency gaps. Because of this dependence on relative, and not absolute, levels of efficiency, the parties’ optimal strategies may lead to large discrepancies between the sum of the budgetary transfers and the sum of the effective transfers. At the extreme, in the spirit of Magee, Brock, and Young (1989), we obtain „black hole” inefficiency. When the model is extended to allow for loyal voter segments and loyalty to a party is positively related to the efficiency of that party’s transfers to the segment, the incentives leading to black hole inefficiency become even stronger. -- Diese Arbeit untersucht die Auswirkung von ineffizienter Umverteilungspolitk im Rahmen des Modells von Myerson (1993). Parteien versuchen, Wählersegmente für sich zu gewinnen, indem sie ihnen Transferzahlungen zusagen. Einzelne Wählersegmente unterscheiden sich in der Effizienz, mit der sich die Transferzahlungen einer bestimmten Partei in einen resultierenden Nutzengewinn für den Wähler übersetzen. Für die Parteien entsteht ein Anreiz, (stochastisch) Ressourcen hin zu Wählersegmenten zu verlagern, bei denen die Transfers von zwei verschiedenen Parteien einen relativ kleinen Unterschied in ihrem Effizienzniveau aufweisen, ungeachtet des absoluten Effizienzniveaus der Transferzahlung. Aufgrund dieser Abhängigkeit von relativen und nicht absoluten Effizienzniveaus können die Gleichgewichtsstrategien der Parteien zu großen Unterschieden zwischen der Summe der getätigten Transfers und der Summe der effektiv erhaltenen Transfers führen. Im Extremfall erhalten wir „black hole“-Ineffizienz wie in Magee, Brock und Young (1989). Eine Erweiterung des Modells um loyale Wählersegmente, bei der Loyalität zu einer Partei in positivem Bezug zur Effizienz der von dieser Partei erhaltenen Transfers steht, verstärkt die Anreize, die zu „black hole“-Ineffizienz führen.

Download Info

If 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.
File URL: http://econstor.eu/bitstream/10419/51102/1/563388722.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Processes and Governance with number SP II 2008-01.

as in new window
Length:
Date of creation: 2008
Date of revision:
Handle: RePEc:zbw:wzbmpg:spii200801

Contact details of provider:
Postal: Reichpietschufer 50, 10785 Berlin
Phone: +49 (0)30 25491-402
Fax: +49 (0)30 25491-400
Email:
Web page: http://www.wzb.eu/
More information through EDIRC

Related research

Keywords: Redistributive politics; redistribution; inefficiency;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Kovenock, Dan & Robertson, Brian, 2005. "Electoral Poaching and Party Identification," Purdue University Economics Working Papers 1178, Purdue University, Department of Economics.
  2. Baye, M. & Kovenock, D. & Vries, C. de, 1990. "The All-Pay Auction with Complete Information," Discussion Paper 1990-51, Tilburg University, Center for Economic Research.
  3. Konrad, Kai A., 2001. "Investment in the absence of property rights: the role of incumbency advantages," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-18, Social Science Research Center Berlin (WZB).
  4. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  5. Acemoglu, Daron & Robinson, James A, 1999. "Inefficient Redistribution," CEPR Discussion Papers 2122, C.E.P.R. Discussion Papers.
  6. Brian Roberson, 2006. "The Colonel Blotto game," Economic Theory, Springer, vol. 29(1), pages 1-24, September.
  7. Nicolas Sahuguet & Nicola Persico, 2006. "Campaign spending regulation in a model of redistributive politics," Economic Theory, Springer, vol. 28(1), pages 95-124, 05.
  8. Lien, Da-Hsiang Donald, 1990. "Corruption and allocation efficiency," Journal of Development Economics, Elsevier, vol. 33(1), pages 153-164, July.
  9. Clark, Derek J. & Riis, Christian, 2000. "Allocation efficiency in a competitive bribery game," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 109-124, May.
  10. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Chowdhury, Subhasish M. & Kovenock, Dan & Sheremeta, Roman M., 2009. "An experimental investigation of Colonel Blotto games," Discussion Papers, Research Unit: Market Processes and Governance SP II 2009-08, Social Science Research Center Berlin (WZB).
  2. Kovenock, Dan & Roberson, Brian, 2009. "Non-partisan 'Get-out-the-vote' efforts and policy outcomes," Discussion Papers, Research Unit: Market Processes and Governance SP II 2009-07, Social Science Research Center Berlin (WZB).
  3. Marcin Dziubiński, 2013. "Non-symmetric discrete General Lotto games," International Journal of Game Theory, Springer, vol. 42(4), pages 801-833, November.
  4. Stefan Homburg, 2011. "Colonel Blotto und seine ökonomischen Anwendungen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 1-11, 02.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:wzbmpg:spii200801. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.