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Heterogeneity in preferences for redistribution and public spending: A cross-country analysis |
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| Institution: | 1. Department of Economics, University of Konstanz, Germany;2. IZA, Bonn, Germany;3. Dondena Research Center on Social Dynamics and Public Policy, Bocconi University, Italy;4. Department of Political and Social Sciences, University of Pavia, Italy;1. School of Politics and Governance, National Research University Higher School of Economics, Moscow, Russia;2. Goodrich C. White Professor (Emeritus) of Political Science, Emory University, Atlanta, Ga, USA;3. International Center for the Study of Institutions and Development, National Research University Higher School of Economics, Moscow, Russia;4. Department of Government, Harvard University, Cambridge, Ma, USA;5. Institute of Education, National Research University Higher School of Economics, Moscow, Russia;1. Department of Economics, Florida International University, FL, 33199, USA;2. Department of Economics, Deakin University, Victoria, 3125, Australia;1. Department of Economics, Illinois State University, Normal, IL, 61790-4200, USA;2. Department of Economics, Cankaya University, 06790, Etimesgut, Ankara, Turkey |
| Abstract: | Political coordination and policy outcomes may be the result not only of the position of the ‘median voter’ in a political scale but also of the heterogeneity of preferences around the median. Depending on the level of government and the type of policy, such heterogeneity may lead to lower public spending and redistribution. We assess this issue empirically by analyzing the relationship between the distribution of preferences for redistribution and the amount of public expenditure at different levels of government and for several types of spending in 23 European countries. Our results suggest a negative and significant correlation between heterogeneity of preferences for redistribution and public spending that is stronger at the local level and for redistributive functions, independent of the median individual's preferences. |
| Keywords: | Preference heterogeneity Propensity for redistribution Median voter Political coordination Public expenditures Government levels |
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