Democracy, redistributive taxation and the private provision of public goods

Thomas Markussen

doi:10.1016/j.ejpoleco.2010.06.002

Democracy, redistributive taxation and the private provision of public goods

3 Citationer (Scopus)

Abstract

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.

Originalsprog	Engelsk
Tidsskrift	European Journal of Political Economy
Vol/bind	27
Udgave nummer	1
Sider (fra-til)	201-213
Antal sider	13
ISSN	0176-2680
DOI	https://doi.org/10.1016/j.ejpoleco.2010.06.002
Status	Udgivet - mar. 2011

Emneord

Det Samfundsvidenskabelige Fakultet
public goods
political economy
inequality
taxation
higher education

Adgang til dokumentet

10.1016/j.ejpoleco.2010.06.002

Citationsformater

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abstract = "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.",

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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

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