CH1 PUBLIC SPENDING AS DESIGNED FOR THE MEDIAN VOTER

Question 1

The Hotelling model

Answer 1

HOTELLING (1929)

• 2 ice cream vendors on the beach
• Are going to place themselves in the middle

Question 2

The median voter theorem

Answer 2

Parties are going to locate themselves in the middle (Hotelling model) to appeal as many voters as possible = not in their interests to appeal minorities
(simplified model : assumes that parties only compete on one dimension)

Question 3

The median voter - interests and author

Answer 3

MILTZER, RICHARD, “a rational theory of the size of government” (1981)
Below-average income : redistribution in their interest

Question 4

Democracy good for the poor ? - theory

Answer 4

MILTZER, RICHARD, “a rational theory of the size of government” (1981)
Because of the robin hood effect, democracy tend to create more redistribution mechanisms than authoritarian systems

Question 5

“Robin hood effect” - theory

Answer 5

MILTZER, RICHARD, “A rational theory of the size of government” (1981)
The more unequal the society the more political parties are incited to commit with more redistribution mechanisms

Question 6

Limits to the median voter theorem - subject + authors + date

Answer 6

• Political partiy members : ALDRICH (1983)
• Targeting non median voters : DIXIT, LONDREGAN (1996)
• Political/electoral institutions : PERSSON, TABELLINI (1999)

Question 7

The importance of political party members

Answer 7

ALDRICH (1983) : members constraining party manifestos
Parties have to keep their members happy
Cannot do whatever they want
Have to be credible: committing to more redistribution cannot always be credible

Question 8

Democracy good for the poor? - empirically

Answer 8

Mixed evidence :

• Démocracies have allowed funding multiple social services (Latin America: education, health, Africa: education)
• Child mortality rates are a strong indicator of poverty : did not really decrease in the context of redistribution (ROSS - 2006) –> tends to help more the middle class than the poorest classes

Question 9

“Robin hood effect” - empirically

Answer 9

Countries with a relatively flatting construction have the highest amount of redistribution = robin hood paradox

Question 10

Targeting non-median voters

Answer 10

DIXIT, LONDREGAN (1996)
Promises of redistribution for relevant groups
Can be in the interest of the party to target non median voters like swing voters
Swing voters tend to be in the middle class

Question 11

Director’s law

Answer 11

Most of redistribution mechanisms in public policies are designed to benefit the middle class

Question 12

DIXIT, LONDREGAN + DIRECTOR’S LAW =

Answer 12

Biased Welfare State

Question 13

Political/electoral institutions

Answer 13

PERSSON, TABELLINI (1999)
Parties do not behave in the same way in the context of a majoritarian system or a proportional one
- Majoritarian system : redistribution towards selected districts
- Proportional system : incentive for parties to design wider redistribution mechanisms + coalition governments

Question 14

Plan chapitre

Answer 14

I. Foundations : the median voter and the size of government

• “median voter theorem”
• hotelling model, HOTELLING
• ” a rational theory of the size of government”, MELTZER, RICHARD

II. Expansion : the role of parties and institutions

• role of political party members, ALDRICH
• targeting non median voters, DIXIT, LONDREGAN
• political institutions, PERSSON, TABELLINI

III. Application : inequality as harmful for the environment
- the median voter and the environment, KEMPF, ROSSIGNOL

Question 15

The median voter and the environment

Answer 15

KEMPF, ROSSIGNOL (2007)

• growth (generates pollution) VS environment
• redistribution either for growth or environment
• democracy : the median voter theorem apply - policies depending on conflicts of interests = the poorer in favour of economic growth / the richer in favour of the protection of the environment
• the more unequal the society, the more harmful for the environment : –> median voter favours growth

In this model, the key explanation for the existence of environmental policies is of an economic nature

Question 16

Nuances to the median voter and the environment

Answer 16

• Unequal richer countries : more harm for the environment
• Equal poorer countries : more harm for the environment
  The main explanation for a given country’s environmental policy is the level of economic development