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Endogenous Constitutions

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  • Davide Ticchi
  • Andrea Vindigni

Abstract

We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. We show that a consensual system turns out to be preferred by society when "ex ante" income inequality is relatively low, while a majoritarian system is chosen when income inequality is relatively high. We also find that consensual democracies should be expected to be ruled more often by centre-left coalitions while the right should have an advantage in majoritarian constitutions. The implications for the relationship between inequality and redistribution are discussed. Historical evidence and a cross-sectional analysis support our results. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

Suggested Citation

  • Davide Ticchi & Andrea Vindigni, 2010. "Endogenous Constitutions," Economic Journal, Royal Economic Society, vol. 120(543), pages 1-39, March.
    • Handle: RePEc:ecj:econjl:v:120:y:2010:i:543:p:1-39
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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