Working Paper Series
Public Finance and Right-Wing Populism
() and Lovisa Persson
Abstract: We build a public finance model that explains why voters
vote for right-wing populists, and also under which conditions established
politicians will adopt a right-wing populist policy platform. Voters with
lower private income have a stronger demand for basic public services at
the expense of spending on a global good; generosity of refugee support
systems, foreign aid, and environmental protection. Low income voters are
thus more prone to support right-wing populists who oppose spending on such
global goods. We conclude that established politicians that are challenged
by right-wing populists will implement a policy with no global good
spending if the relative cost of the global good is high enough.
Additionally, adoption of right-wing populist policy is more likely when
the economy is in a recession.
Keywords: Right-wing populism; Agency; Immigration; (follow links to similar papers)
JEL-Codes: D70; D72; H39; (follow links to similar papers)
28 pages, October 5, 2017
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