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Whose Preferences Matter for Redistribution: Cross-Country Evidence

Author

Listed:
  • Michel Andre Maréchalⓡ
  • Alain Cohnⓡ
  • Jeffrey Yusofⓡ
  • Raymond Fismanⓡ
  • Michel André Maréchal
  • Raymond Fisman

Abstract

Using cross-sectional data from 93 countries, we investigate the relationship between the desired level of redistribution among citizens from different socioeconomic backgrounds and the actual extent of government redistribution. Our focus on redistribution arises from the inherent class conflicts it engenders in policy choices, allowing us to examine whose preferences are reflected in policy formulation. Contrary to prevailing assumptions regarding political influence, we find that the preferences of the lower socioeconomic group, rather than those of the median or upper strata, are most predictive of realized redistribution. This finding contradicts the expectations of both leading experts and regular citizens.

Suggested Citation

  • Michel Andre Maréchalⓡ & Alain Cohnⓡ & Jeffrey Yusofⓡ & Raymond Fismanⓡ & Michel André Maréchal & Raymond Fisman, 2023. "Whose Preferences Matter for Redistribution: Cross-Country Evidence," CESifo Working Paper Series 10846, CESifo.
    • Handle: RePEc:ces:ceswps:_10846
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    More about this item

    Keywords

    elite capture; median voter theorem; preferences for redistribution;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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