Journal ArticleDOI
A Rational Theory of the Size of Government
Allan H Meltzer,Scott F. Richard +1 more
TLDR
In a general equilibrium model of a labor economy, the size of government, measured by the share of income redistributed, is determined by majority rule as mentioned in this paper, where voters rationally anticipate the disincentive effects of taxation on the labor-leisure choices of their fellow citizens and take the effect into account when voting.Abstract:
In a general equilibrium model of a labor economy, the size of government, measured by the share of income redistributed, is determined by majority rule. Voters rationally anticipate the disincentive effects of taxation on the labor-leisure choices of their fellow citizens and take the effect into account when voting. The share of earned income redistributed depends on the voting rule and on the distribution of productivity in the economy. Under majority rule, the equilibrium tax share balances the budget and pays for the voters' choices. The principal reasons for increased size of government implied by the model are extensions of the franchise that change the position of the decisive voter in the income distribution and changes in relative productivity. An increase in mean income relative to the income of the decisive voter increases the size of government.read more
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Journal ArticleDOI
A public management for all seasons
TL;DR: In this paper, the authors discuss the doctrinal content of the group of ideas known as "New Public Management" (NPM), the intellectual provenance of those ideas, explanations for their apparent persuasiveness in the 1980 s; and criticisms which have been made of the new doctrines.
Journal ArticleDOI
Distributive Politics and Economic Growth
Alberto Alesina,Dani Rodrik +1 more
TL;DR: This paper analyzed the relationship between economics and politics and concluded that inequality is conducive to the adoption of growth-retarding policies, and presented cross-country evidence consistent with it. But their analysis focused on how an economy's initial configuration of resources shapes the political struggle for income and wealth distribution, and how that, in turn, affects long run growth.
Book
Is inequality harmful for growth
Torsten Persson,Guido Tabellini +1 more
TL;DR: In this article, a theoretical model for the relationship between inequality and economic growth is proposed, and the model implications are supported by the evidence that both historical panel data and post-war cross-sectional data indicate a significant and large negative relation between inequalities and growth.
Book
Veto Players: How Political Institutions Work
TL;DR: In this paper, Veto players analysis of European Union Institutions is presented, focusing on the role of individual veto players and collective players in the analysis of the institutions of the European Union.
Posted Content
Public Goods and Ethnic Divisions
TL;DR: In this article, the authors present a model that links heterogeneity of preferences across ethnic groups in a city to the amount and type of public goods the city supplies, and conclude that ethnic conflict is an important determinant of local public finances.
References
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Book
An Economic Theory of Democracy
TL;DR: Downs presents a rational calculus of voting that has inspired much of the later work on voting and turnout as discussed by the authors, particularly significant was his conclusion that a rational voter should almost never bother to vote.
Journal ArticleDOI
The Logic of Collective Action: Public Goods and the Theory of Groups.
Sidney C. Sufrin,Mancur Olson +1 more
Book ChapterDOI
Stability in Competition
TL;DR: In this paper, it was shown that if the purveyor of an article gradually increases his price while his rivals keep theirs fixed, the diminution in volume of his sales will in general take place continuously rather than in the abrupt way which has tacitly been assumed.
Book ChapterDOI
Economic Growth and Income Inequality
TL;DR: The process of industrialization engenders increasing income inequality as the labor force shifts from low-income agriculture to the high income sectors as mentioned in this paper, and on more advanced levels of development inequality starts decreasing and industrialized countries are again characterized by low inequality due to the smaller weight of agriculture in production and income generation.