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Fiscal Equlisation and Citizen's Preferences : Evidence from Swiss Municipalities

Author

Listed:
  • Nils Soguel

    (IDHEAP)

  • Alexandre Tangerini

    (IDHEAP)

Abstract

The normative literature on fiscal federalism generally recognises the need for fiscal equalisation mechanisms to facilitate the mitigation of inequities in the distribution of resources. The question of how far to go in matters of fiscal equalisation is a very sensitive one. Choices in this area reflect the prevailing social norms and the political debates, in the context of which these norms are expressed. Moreover, the political debates are characterised by the usual tensions between selfish and altruistic visions of society. The empirical part of this contribution analyses the results of two referenda recently held in the Canton of Vaud in Switzerland. It provides explanatory models for both ballots (acceptance rate of the propositions in each municipality). The model’s explanatory variables show that the people of Vaud’s voting behaviour was basically selfish. The widespread belief that voters are capable of altruism in this particular area is, therefore, rejected.

Suggested Citation

  • Nils Soguel & Alexandre Tangerini, 2005. "Fiscal Equlisation and Citizen's Preferences : Evidence from Swiss Municipalities," Public Economics 0507006, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwppe:0507006
    Note: Type of Document - pdf; pages: 20
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0507/0507006.pdf
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    References listed on IDEAS

    as
    1. Hudson, John & Jones, Philip R., 1994. "The importance of the 'ethical voter': An estimate of 'altruism'," European Journal of Political Economy, Elsevier, vol. 10(3), pages 499-509, October.
    2. repec:cup:apsrev:v:69:y:1975:i:03:p:926-928_24 is not listed on IDEAS
    3. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489, November.
    4. Hochman, Harold M & Rodgers, James D, 1969. "Pareto Optimal Redistribution," American Economic Review, American Economic Association, vol. 59(4), pages 542-557, Part I Se.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H - Public Economics

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