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The political economy of xenophobia and distribution: The case of Denmark

Author

Listed:
  • John E. Roemer

    (Yale University [New Haven])

  • Karine van Der Straeten

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique)

Abstract

For the first time in some years, a conservative government came to power in Denmark in 2001, due primarily to the citizenry's disaffection with social-democratic policies on immigration. We represent political competition in Denmark as taking place over two issues--the size of the public sector and immigration--and model political equilibrium using the party unanimity Nash equilibrium (PUNE) concept, which generates equilibria on multi-dimensional policy spaces where parties form endogenously. By fitting the model to Danish data, we argue that citizen xenophobia may be expected to decrease the size of the Danish public sector by an amount between 12% and 36% of one standard deviation of the probability distribution of citizens' ideal points of the size of the public sector.

Suggested Citation

  • John E. Roemer & Karine van Der Straeten, 2006. "The political economy of xenophobia and distribution: The case of Denmark," Post-Print halshs-00754146, HAL.
    • Handle: RePEc:hal:journl:halshs-00754146
    DOI: 10.1111/j.1467-9442.2006.00450.x
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