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Election Goals and Income Redistribution: Recent Evidence From Albania

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  • Anne Case

    (Princeton University)

Abstract

This paper examines the impact of political competition on block grants from federal to sub-federal levels of government. We model the extent and direction of income redistribution as determined proximately by the political agendas of central decisionmakers and, at a deeper level, by the institutions within which they find themselves operating. We contrast two institutional frameworks that give way to differing political objective functions and, in turn, to strikingly different empirical predictions of the ways in which politics should affect fiscal policy. Lessons learned here may prove important in understanding limits on the types of redistribution possible via block grants, given the institutional framework, in both developing and developed countries.

Suggested Citation

  • Anne Case, 1997. "Election Goals and Income Redistribution: Recent Evidence From Albania," Working Papers 227, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  • Handle: RePEc:pri:rpdevs:case_election_goals_and_income_redistribution_eer.pdf
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    References listed on IDEAS

    as
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    7. Avinash Dixit & John Londregan, 1998. "Ideology, Tactics, and Efficiency in Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(2), pages 497-529.
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    More about this item

    Keywords

    Albania;

    JEL classification:

    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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