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Four critiques of the redistribution hypothesis : an assessment

Author

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  • Milanovic, Branko

Abstract

This paper discusses and assesses critiques of the aurhor's reformulation of the median voter hypothesis and its testing. The author rephrases and redefines more correctly the redistribution hypothesis and clarifies its relationship with the median voter hypothesis. He also reviews four types of critiques leveled at his approach.

Suggested Citation

  • Milanovic, Branko, 2009. "Four critiques of the redistribution hypothesis : an assessment," Policy Research Working Paper Series 5145, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5145
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
    2. repec:cup:apsrev:v:100:y:2006:i:02:p:165-181_06 is not listed on IDEAS
    3. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, pages 960-980.
    4. Francesco Scervini, 2012. "Empirics of the median voter: democracy, redistribution and the role of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 529-550, December.
    5. Borge, Lars-Erik & Rattso, J.Jorn, 2004. "Income distribution and tax structure: Empirical test of the Meltzer-Richard hypothesis," European Economic Review, Elsevier, vol. 48(4), pages 805-826, August.
    6. Ryo Arawatari, 2009. "Informatization, voter turnout and income inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(1), pages 29-54, March.
    7. Alberto Chong & Mauricio Olivera, 2008. "Does Compulsory Voting Help Equalize Incomes?," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 391-415, November.
    8. Allan Meltzer & Scott Richard, 1983. "Tests of a rational theory of the size of government," Public Choice, Springer, vol. 41(3), pages 403-418, January.
    9. Creedy, John & Moslehi, Solmaz, 2009. "Modelling the composition of government expenditure in democracies," European Journal of Political Economy, Elsevier, pages 42-55.
    10. repec:cup:apsrev:v:95:y:2001:i:04:p:859-874_40 is not listed on IDEAS
    11. Perotti, Roberto, 1996. "Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-187, June.
    12. Hodler, Roland, 2008. "Leisure and redistribution," European Journal of Political Economy, Elsevier, vol. 24(2), pages 354-363, June.
    13. Tridimas, George & Winer, Stanley L., 2005. "The political economy of government size," European Journal of Political Economy, Elsevier, vol. 21(3), pages 643-666, September.
    14. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    15. Milanovic, Branko, 2000. "The median-voter hypothesis, income inequality, and income redistribution: an empirical test with the required data," European Journal of Political Economy, Elsevier, vol. 16(3), pages 367-410, September.
    16. Harms, Philipp & Zink, Stefan, 2003. "Limits to redistribution in a democracy: a survey," European Journal of Political Economy, Elsevier, vol. 19(4), pages 651-668, November.
    17. Jo Thori Lind, 2005. "Why is there so little redistribution?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 111-125.
    18. Bassett, William F. & Burkett, John P. & Putterman, Louis, 1999. "Income distribution, government transfers, and the problem of unequal influence," European Journal of Political Economy, Elsevier, vol. 15(2), pages 207-228, June.
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    Citations

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    Cited by:

    1. Francesco Scervini, 2012. "Empirics of the median voter: democracy, redistribution and the role of the middle class," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 529-550, December.
    2. Javier Olivera, 2015. "Preferences for redistribution in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.
    3. István György Tóth & Keller, T., 2011. "GINI DP 7: Income Distributions, Inequality Perceptions and Redistributive Claims in European Societies," GINI Discussion Papers 7, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Philip Keefer & Branko Milanovic, 2014. "Party Age and Party Color: New Results on the Political Economy of Redistribution and Inequality," IDB Publications (Working Papers) 6745, Inter-American Development Bank.
    5. Martínez-Mora, Francisco & Puy, M. Socorro, 2014. "The determinants and electoral consequences of asymmetric preferences," European Journal of Political Economy, Elsevier, vol. 33(C), pages 85-97.
    6. Peter J. Lambert & Runa Nesbakken & Thor O. Thoresen, 2015. "A common base answer to "Which country is most redistributive?"," Discussion Papers 811, Statistics Norway, Research Department.
    7. Fabio Padovano & Gilberto Turati, 2012. "Redistribution through a "Leaky Bucket". What explains the Leakages?," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2012-03-ccr, Condorcet Center for political Economy.
    8. Fabio Padovano & Francesco Scervini & Gilberto Turati, 2016. "How do Governments Fare about Redistribution? New Evidence on the Political Economy of Redistribution," CESifo Working Paper Series 6137, CESifo Group Munich.
    9. Markussen, Thomas, 2011. "Democracy, redistributive taxation and the private provision of public goods," European Journal of Political Economy, Elsevier, vol. 27(1), pages 201-213, March.
    10. Corneo, Giacomo & Neher, Frank, 2015. "Democratic redistribution and rule of the majority," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 96-109.
    11. Peter Lambert & Thor Thoresen & Runa Nesbakken, 2010. "On the Meaning and Measurement of Redistribution in Cross-Country Comparisons," LIS Working papers 532, LIS Cross-National Data Center in Luxembourg.
    12. Markus Jäntti & Jukka Pirttilä & Risto Rönkkö, 2016. "Redistribution around the world Causes and consequences," WIDER Working Paper Series 133, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Inequality; Economic Theory&Research; Poverty Impact Evaluation; Emerging Markets; Markets and Market Access;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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