VOTING FOR INCOME-IMMISERIZING REDISTRIBUTION IN THE MELTZER-RICHARD MODEL.

This paper argues that income received via redistributive transfers, unlike labor income, requires no direct sacrifice of leisure; this makes it attractive to many voters even if it leaves them poorer. This point is made within the classic model wherein heterogeneous voters evaluate an income-redist...

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Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 52; no. 2; pp. 682 - 696
Autores principales: BARNETT, RICHARD C., BHATTACHARYA, JOYDEEP, BUNZEL, HELLE
Formato: Artículo
Publicado: Wiley-Blackwell Apr2014
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This paper argues that income received via redistributive transfers, unlike labor income, requires no direct sacrifice of leisure; this makes it attractive to many voters even if it leaves them poorer. This point is made within the classic model wherein heterogeneous voters evaluate an income-redistribution program that finances a lump-sum transfer to all via a distorting income tax. The political-equilibrium policy under majority rule is the tax most preferred, utility-wise, by the median voter. Ironically, this voter, and many poorer voters, may support a redistribution policy that leaves them poorer in income terms but with higher utility. (JEL H2, E6, D72 )