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

Listed author(s):
  • John E. Roemer

    (Yale University [New Haven])

  • Karine Van Der Straeten

    (CECO - Laboratoire d'économétrie de l'École polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique, PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

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.

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Paper provided by HAL in its series Post-Print with number halshs-00754146.

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Date of creation: Jul 2006
Publication status: Published in Scandivavian Journal of Economics, 2006, 108 (2), pp.251-278. <10.1111/j.1467-9442.2006.00450.x>
Handle: RePEc:hal:journl:halshs-00754146
DOI: 10.1111/j.1467-9442.2006.00450.x
Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754146
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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