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Income Redistribution and Public Good Provision in a Diverse Society

Listed author(s):
  • Selim Jürgen Ergun


    (Department of Economic Theory and Economic History, University of Granada.)

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.

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Paper provided by Department of Economic Theory and Economic History of the University of Granada. in its series ThE Papers with number 09/04.

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Length: 25 pages
Date of creation: 14 Sep 2009
Handle: RePEc:gra:wpaper:09/04
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  1. Selim Ergun, 2010. "From plurality rule to proportional representation," Economics of Governance, Springer, vol. 11(4), pages 373-408, November.
  2. Enriqueta Aragonès, 2007. "The key party in the Catalan government," Spanish Economic Review, Springer;Spanish Economic Association, vol. 9(4), pages 249-271, December.
  3. 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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