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Composition of Government Budget, Non‐Single Peakedness, and Majority Voting

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  • Peter Bearse
  • Gerhard Glomm
  • Eckhard Janeba

Abstract

In this paper we study whether majority voting equilibria exist when preferences over public policies are not single peaked. The government levies a proportional income tax. Tax revenue is used to finance a uniform lump‐sum transfer and public education. Individuals vote on the composition of the government budget. We show that the single‐crossing property cannot be invoked to establish existence of a majority voting equilibrium. In a simple parametric example we find that cycles are pervasive.

Suggested Citation

  • Peter Bearse & Gerhard Glomm & Eckhard Janeba, 2001. "Composition of Government Budget, Non‐Single Peakedness, and Majority Voting," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(4), pages 471-481, October.
    • Handle: RePEc:bla:jpbect:v:3:y:2001:i:4:p:471-481
    DOI: 10.1111/1097-3923.00079
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    Cited by:

    1. Roy, Souvik & Sadhukhan, Soumyarup, 2021. "A unified characterization of the randomized strategy-proof rules," Journal of Economic Theory, Elsevier, vol. 197(C).
    2. Tetsuo Ono, 2012. "Inequality Dynamics and the Politics of Redistribution," Discussion Papers in Economics and Business 12-09-Rev, Osaka University, Graduate School of Economics, revised Nov 2013.
    3. Tetsuo Ono, 2015. "Public education and social security: a political economy approach," Economics of Governance, Springer, vol. 16(1), pages 1-25, February.
    4. John Creedy & Shuyun May Li & Solmaz Moslehi, 2008. "The Composition of Government Expenditure in an Overlapping Generations Model," Department of Economics - Working Papers Series 1043, The University of Melbourne.
    5. Uchida, Yuki & Ono, Tetsuo, 2022. "Politics of Public Education and Pension Reform with Endogenous Fertility," MPRA Paper 114543, University Library of Munich, Germany.
    6. Ono, Tetsuo & Uchida, Yuki, 2016. "Pensions, education, and growth: A positive analysis," Journal of Macroeconomics, Elsevier, vol. 48(C), pages 127-143.
    7. John Creedy & Solmaz Moslehi, 2010. "The Role of Home Production in Voting Over Taxes and Expenditure," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(1), pages 81-97.
    8. Tetsuo Ono, 2014. "Economic Growth and the Politics of Intergenerational Redistribution," Discussion Papers in Economics and Business 14-17-Rev., Osaka University, Graduate School of Economics, revised Sep 2015.
    9. John Creedy & Solmaz Moslehi, 2014. "The composition of government expenditure with alternative choicemechanisms," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(1), pages 53-71, April.
    10. Tetsuo Ono, 2016. "Inequality and the politics of redistribution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(2), pages 191-217, April.
    11. Jana Friedrichsen & Tobias König & Tobias Lausen, 2021. "Social Status Concerns and the Political Economy of Publicly Provided Private Goods [Housing markets and structural policies in OECD countries]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 220-246.

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