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Ideology, Tactics, and Efficiency in Redistributive Politics Export

Quarterly Journal of Economics, Vol. 113, No. 2. (May 1998), pp. 497-529.

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formaltheory partisanship politicaleconomy

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We model the electoral politics of redistribution when voters and parties care about inequality in addition to their private concerns for consumption and votes, respectively. Ideological concerns about income redistribution lead each party to adopt a general proportional income tax, adjusted to appeal to the ideological leanings of high “clout” groups, with disproportionately many “swing” voters, which the parties also ply with pork-barrel projects. Our results relate to “Director's Law,” which says that redistributive politics favors middle classes at the expense of both rich and poor.


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