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Political institutions and income (re-)distribution: evidence from developed economies

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We discuss the effect of formal political institutions (electoral systems, fiscal decentralization, presidential and parliamentary regimes) on the extent and direction of income (re-) distribution. Empirical evidence is presented for a large sample of 70 economies and a panel of 13 OECD countries be...

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Bibliographic Details
Main Authors: Feld, Lars P. (Author) , Schnellenbach, Jan (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Munich Univ., Center for Economic Studies 2013
Series:CESifo working paper series Public choice 4382
In: CESifo working papers (4382)

Online Access: Get full text
Author Notes:Lars P. Feld ; Jan Schnellenbach

MARC

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520 |a We discuss the effect of formal political institutions (electoral systems, fiscal decentralization, presidential and parliamentary regimes) on the extent and direction of income (re-) distribution. Empirical evidence is presented for a large sample of 70 economies and a panel of 13 OECD countries between 1981 and 1998. The evidence indicates that presidential regimes are associated with a less equal distribution of disposable incomes, while electoral systems have no significant effects. Fiscal competition is associated with less income redistribution and a less equal distribution of disposable incomes, but also with a more equal primary income distribution. Our evidence also is in line with earlier empirical contributions that find a positive relationship between trade openness and equality in primary and disposable incomes, as well as the overall redistributive effort. 
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