Democracy, redistributive taxation and the private provision of public goods
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Democracy, redistributive taxation and the private provision of public goods. / Markussen, Thomas.
In: European Journal of Political Economy, Vol. 27, No. 1, 03.2011, p. 201-213.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Democracy, redistributive taxation and the private provision of public goods
AU - Markussen, Thomas
N1 - JEL classification: D31, D7, H2, H41, I22
PY - 2011/3
Y1 - 2011/3
N2 - The paper studies in a simple, Downsian model of political competition the private provision of public goods embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on production of public goods, to which Olson (1965) pointed, is weakened and might even be reversed in this context. Also, the median voter may choose a negative tax rate, even if he or she is poorer than the mean, in order to stimulate production of public goods. The relevance of the model is illustrated with an application to the financing of higher education.
AB - The paper studies in a simple, Downsian model of political competition the private provision of public goods embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on production of public goods, to which Olson (1965) pointed, is weakened and might even be reversed in this context. Also, the median voter may choose a negative tax rate, even if he or she is poorer than the mean, in order to stimulate production of public goods. The relevance of the model is illustrated with an application to the financing of higher education.
KW - Faculty of Social Sciences
KW - public goods
KW - political economy
KW - inequality
KW - taxation
KW - higher education
U2 - 10.1016/j.ejpoleco.2010.06.002
DO - 10.1016/j.ejpoleco.2010.06.002
M3 - Journal article
VL - 27
SP - 201
EP - 213
JO - European Journal of Political Economy
JF - European Journal of Political Economy
SN - 0176-2680
IS - 1
ER -
ID: 33599390