The dynamics of government

• 成果类型: Article; Proceedings Paper
• 署名作者: Hassler, J; Krusell, P; Storesletten, K; Zilibotti, F
• 署名单位: Stockholm University; Princeton University; Center for Economic & Policy Research (CEPR); University of Oslo
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.08.012
• 发表日期: 2005
• 页码: 1331-1358
• 关键词: welfare state dynamics; Markov equilibrium; political economy; redistribution; repeated voting

摘要

We model income redistribution with dynamic distortions as determined by rational voting without commitment among individuals of different types and income realizations. We find that redistribution is too persistent relative to that chosen by a planner with commitment. The difference is larger, the lower is the political influence of young agents, the lower is the altruistic concern for future generations, and the lower is risk-aversion. Furthermore, there tends to be too much redistribution in the political equilibrium. Finally, smooth preference aggregation, as under probabilistic voting, produces less persistence and does not admit multiple equilibria, which occur under majority-voting aggregation. (c) 2005 Elsevier B.V. All rights reserved.