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Regime Type, Inequality, and Redistributive Transfers in Developing Countries

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  • Dodlova, Marina
  • Giolbas, Anna

Abstract

The debate on whether democracy and inequality increase the level of redistribution in a country is still ongoing. We construct a model that predicts a higher probability of redistribution in democracies than in autocracies. Further, with higher initial inequality, there should be more redistribution in democracies but not necessarily in autocracies. We test these predictions using data on social transfers in developing countries for the period 1960-2010. We confirm that democracy increases redistribution and, to some extent, that there is more redistribution with rising inequality. Hence, on the basis of a direct measure of redistribution, we present evidence to confirm the median voter theorem.

Suggested Citation

  • Dodlova, Marina & Giolbas, Anna, 2015. "Regime Type, Inequality, and Redistributive Transfers in Developing Countries," GIGA Working Papers 273, GIGA German Institute of Global and Area Studies.
  • Handle: RePEc:zbw:gigawp:273
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    Cited by:

    1. Dodlova, Marina & Giolbas, Anna & Lay, Jann, 2016. "Non-Contributory Social Transfer Programmes in Developing Countries: A New Data Set and Research Agenda," GIGA Working Papers 290, GIGA German Institute of Global and Area Studies.

    More about this item

    Keywords

    regime type; inequality; redistribution; median voter theorem;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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