Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 21/2003: Fractionalization and the size of government
Jo Thori Lind ()
Additional contact information
Jo Thori Lind: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Abstract: I study the effect of voters with a group-based social conscience. Voters then care more about the well-being of those belonging to their own group than the rest of the population. Within a model of political tax determination, both fractionalization and group antagonism reduce the support for redistribution. Whereas within group inequality increases support for redistribution, inequality between groups has the opposite effect. All these results hold even if a poor group is in majority. Using a panel data set for the US constructed from micro data, I find support for the hypothesis that within race inequality increases and between race inequality decreases redistribution.
Keywords: Fractionalization; political economy; inequality; redistribution; race
50 pages, August 12, 2003
Full text files
Memo-21-2003.pdf
- Published as
- Jo Thori Lind, (2007), 'Fractionalization and the size of government', Journal of Public Economics, vol 91, pages 51-76
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