Working Paper: CEPR ID: DP10086
Authors: Giacomo Corneo; Frank Neher
Abstract: Does redistribution in democracies cater to the will of the majority? We propose and apply a simple empirical strategy based on survey data to address that longstanding issue. Differently from previous evaluations of the median-voter theory, ours does not assume that voters are guided by pecuniary motives alone. We find that most democracies do implement the amount of redistribution advocated by the median voter and the probability to serve the median voter increases with the quality of democracy. However, we detect a non-negligible share of democracies that implement a minority-backed amount of redistribution. Such outcomes cannot be explained by political absenteeism of the poor. They can be explained by the electoral bundling of redistribution with values and rights issues.
Keywords: democracy; income redistribution
JEL Codes: D3; D7; H1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Quality of democracy (D72) | Probability of alignment with median voter's preferences (D79) |
| Median voter's preferences (D79) | Amount of redistribution (H23) |
| Asymmetric participation (D72) | Misalignment between actual and hypothetical median voter (D79) |
| Policy bundle effect (D78) | Deviations in alignment of redistributive policies with majority preferences (D72) |
| Quality of democracy (D72) | Amount of redistribution (H23) |
| Amount of redistribution (H23) | Median voter's preferences (D79) |