Working Paper: CEPR ID: DP18667
Authors: Tim Besley; Torsten Persson
Abstract: This paper puts forward a model to explore the static and dynamic consequences of new policy cleavages which cut across the traditional left-to-right, class-based divide. We study the interplay between the political equilibrium, policy cleavages, and the incentives to invest in human capital — in the process bringing some important ideas from political sociology into political economics. Our formalized framework casts new light on debates about the policy consequences of economic, cultural and political shocks, many of which have been empirically explored in recent economics and politics research.
Keywords: political competition
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| emergence of new political cleavages (O17) | disruption of traditional left-right politics (P39) |
| shocks (economic, cultural, and political) (F69) | emergence of new political cleavages (O17) |
| higher education levels (I23) | increased support for pro-immigration policies (J68) |
| lower education levels (I24) | nationalist sentiments (F52) |
| educational investments (I26) | voter preferences (K16) |
| voter preferences (K16) | party strategies (D72) |
| political shocks (F69) | re-alignment of party positions (D72) |