Income Redistribution and Public Good Provision in a Diverse Society
I analyze the post-electoral coalition formation process in a two dimensional political environment. The two dimensions are the degree of a proportional tax rate and the degree of a group-speci?c public good. Parties are o¢ ce-motivated and care instrumentally about policy. I analyze when stable coalitions exist and obtain that for that to occur o¢ ce bene?ts should exceed a certain level. I analyze how this critical level and the set of policies implemented are a¤ected by the income levels and the degree of diversity. For both o¢ ce and policy-motivated parties the same result holds but the critical level might be lower.
|Date of creation:||14 Sep 2009|
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- Enriqueta Aragonès, 2006.
"The Key Party in the Catalan Government,"
287, Barcelona Graduate School of Economics.
- Enriqueta Aragonès, 2007. "Government formation in a two dimensional policy space," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(2), pages 151-184, January.
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